12-Month Net Income Growth: 21%
Quarterly Operating Profit Margin: 29%
Cash Flow Multiple: 16 (16% peer premium)
Analysts' Median Target: $69.23
3-Year Dividend Growth: 9%
Dividend Yield: 2.7%
Payout Ratio: 53%
2011 Catalyst: Coca-Cola has, arguably, the world's best brand, and it's expanding overseas. Third-quarter volume jumped 6%, with a 2% gain in North America and a 6% advance overseas. Eurasia and Africa volume climbed 12%. Pacific volume, including China, expanded 12%. Chinese volume itself rose 11%. The beverage business is booming. Coke opened three new bottling plants in China during the quarter. Though not cheap relative to beverage peers, Coke is a fundamentally attractive stock, with a 27% return on equity in the latest quarter and a 14% return on assets. Of analysts covering Coke, 85% recommend buying its shares and 15% advise holding them. Bullish Scenario: Stifel Financial forecasts that Coke's stock will advance 16% to $75. Bearish Scenario: HSBC values Coke at $64, suggesting a marginal decline.