This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Coca-Cola: 5 Reasons to Buy the Stock

Stocks in this article: KO

By Jim Woods of InvestorPlace

NEW YORK ( TheStreet) -- Coca-Cola (KO - Get Report) is one of the world's most best-known companies and brands.

Coca-Cola has been serving up its fizzy cola drink since the 19th century, and over the past six decades the beverage giant's stock has delivered big-time returns to shareholders. Like shares of most major conglomerates, Coke's stock took a hit from October 2008 to March 2009, but for the remainder of that year the company's shares fought their way back and became a huge winner.

So far in 2010, however, Coca-Cola stock is down nearly 6%. Will Coca-Cola shares continue to fizz out here, or is the stock now a buy? Here are five reasons why you should consider drinking up Coke stock.

  • Coke earnings are strong. On April 20, Coca-Cola reported first-quarter earnings that were 19% higher than the same quarter one year ago. The company said it earned $1.61 billion, or 69 cents per share, up from earnings of $1.35 billion, or 58 cents a share, a year ago.

    Excluding one-time items such as restructuring charges and the impact of the Venezuela currency devaluation, earnings would have been 80 cents per share. The adjusted EPS number did fall short of the 75 cents anticipated by analysts. Coke's first-quarter sales rose 5% to $7.53 billion, and though this number was slightly below expectations, it's still very strong.

  • Coca-Cola sees rising unit case volume. Worldwide unit case volume for Coca-Cola, a measure of the number of unit cases (or unit case equivalents) of trademarked or licensed beverage products directly or indirectly sold, rose 3% in the quarter. International case volume grew at a 5% pace. In the previous quarter, unit case volume worldwide climbed 5%, and once again we saw strong gains in the international markets. This measure is similar to the retail same-store sales measure, and solid growth in this metric means continued upside for Coca-Cola stock.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs