And I expect that I'll continue to wait a little while longer before the word "cheap" to describe Coca-Cola can be repeated.
The fact is, very rarely do companies like Coca-Cola and rival Pepsico (PEP - Get Report) trade at less than fair market value. That's not to say that Coca-Cola is not a great buy today. But with second-quarter earnings on tap for Tuesday, July 16, value-oriented investors have to understand what they are paying for.
In the April quarter, for example, although Coca-Cola overcame some challenges, there were also plenty of noticeable room for improvement. Although the company did an excellent job growing volumes worldwide by 4%, which beat expectations, revenue still fell 1% year over year to $11.04 billion. There were noticeable pressures in the company's prices and product mix.
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