Is Coca-Cola Stock a Buy Right Now?
Coca-Cola's (NYSE: KO) stock returns and its business are moving in opposite directions these days. The beverage giant just reported positive operating trends for fiscal 2023, and yet Coke was among the weakest performers on the Dow Jones Industrial Average for the year. Shares have gained just 2% in the last 12 months compared to the Dow's 19% rally.
Does that performance gap pave the way for market-beating returns for investors willing to buy Coke stock today? Let's take a closer look.
The biggest knock against Coke's business is that growth has been less than sparkling. Sure, organic sales gains were 12% in 2023 on top of a 16% spike in the prior year. Yet this past year's increase came almost entirely from rising prices; Coke's sales volume growth slowed to 2% last year from 5% in 2022. It's not a great sign for future sales trends that shoppers are scaling back on their soda purchases.
Source Fool.com
