Coke to Take Biggest Euro Hit: Poll

As euro fears hit the markets, it is increasingly apparent that even the staple consumer stocks will be affected. We asked users of 'TheStreet' which consumer stock would take the biggest hit.
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(Consumer goods poll results story updated with Deutsche Bank view on Coke.)
NEW YORK (TheStreet) -- As euro fears hit the global markets, it seems increasingly apparent that even the staple consumer stocks will be affected, given the exposure that many have to the region.

And so last week we reached out to

TheStreet

users and asked which consumer goods stock they thought would take the worse hit from the euro crisis:

P&G

(PG) - Get Report

,

J&J

(JNJ) - Get Report

,

Kimberly-Clark

(KMB) - Get Report

,

Colgate-Palmolive

(CL) - Get Report

or

Coca-Cola

(KO) - Get Report

?

According to the results, 30.2% of those surveyed felt that Coca-Cola stock would take the hardest hit from the euro anxiety, while 28.3% believed that shares of P&G would suffer the most. Colgate-Palmolive stock received 16.4% of the votes and Kimberly-Clark shares took 14.2% of them.

It seems that J&J, at least in the opinion of our survey takers, is least likely to be hurt by the euro troubles, garnering just 10.9% of the total vote count.

By the end of last week, investors' euro anxieties seemed to be abating. Germany's decision to accept the euro zone package and the passage of a key financial reform package helped bring back some certainty into the stock markets.

The Dow Jones Industrial Average ended the closing bell up 125 points, or 1.3%, to 10,193 on Friday. The S&P 500 rose 16 points, or 1.5%, to 1088; and the Nasdaq gained 25 points, or 1.1%, at 2229.

With the exception of Kimberly-Clark, all the stocks included in the survey tumbled over the week. Of the four stocks that fell, all ended Friday's regular trading session firmer, with the exception of Colgate, whose shares fell 0.9%

P&G finished Friday up 0.4%; Kimberly-Clark and J&J ended 0.6% higher and Coke was relatively flat, up 0.1%.

According to

Deutsche Bank

(DB) - Get Report

analysts, Coke's valuation has been compelling, despite investor worries about its exposure to the euro.

The Deutsche Bank analysts say that while there's been an overhang on Coke's stock ever since it announced it would acquire

Coca-Cola Enterprises'

(CCE)

North American bottling business, the deal was still necessary; Coke's North American operations after all, needed to a fix.

Arguments in favor of the deal and views that currency volatility will eventually be tempered have led the Deutsche Bank analysts to argue that Coke's current weakness has actually created a buying opportunity for investors.

-- Reported by Andrea Tse in New York

RELATED STORIES:

>>Coke Euro: Crisis Could Dent Profits

>>Euro Crisis: Which Consumer Goods Stock Will Suffer Most?

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