Is the future looking brighter than the past for Coca-Cola (KO) ?

TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer said on CNBC's Mad Money Wednesday the soft drink maker is in the midst of a remarkable turnaround and the stock has been picking up steam for the past four months.

Over the past five years, shares of Coke are only up 21%, compared to over 70% for rival PepsiCo  (PEP) . But Coke began to make a turn after new CEO, James Quincey, took the helm on May 1. Quincey has been executing on Coke's plan to revitalize itself and that plan's been working.

Innovation is at the core of Coke's turnaround plans and the company introduced over 500 new products last year and plans to introduce 500 more this year. Coke continues to focus on making its products healthier with less sugar and continues to innovate with new, smaller packaging and sizes.

Coke is also adopting a leaner structure and more agile operating model, shedding off its bottlers to focus solely on its many brands. By cutting costs, Coke now has new ways to win.

But for all the company has going for it, Cramer said he's a little skeptical with shares trading at 24 times earnings compared to PepsiCo at 22 times earnings. On a pullback however, Cramer said he think Coke could be a winner.

Coca-Cola shares fell 0.5% to $45.08 on Thursday morning.

Cramer and the Actions Alerts Plus team explain to their investment club members why they think Schlumberger (SLB) is oversold, and they're adding to the position. Get in on the conversation with a free trial subscription to Action Alerts PLUS.

On Real Money, Cramer says Janet Yellen doesn't get the credit she deserves. Get more of his insights and a free trial subscription to Real Money.

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To read a full recap of this episode of "Mad Money," click here.

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At the time of publication, Cramer's Action Alerts PLUS had positions in SLB, PEP.

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