3 Reasons to Buy This Underperforming Dow Giant
The Dow Jones Industrial Average is a great place for investors to go shopping It's a collection of some of the largest, most successful businesses on the planet, and the group covers a wide range of industries and selling models.
From time to time, some of the stocks in this esteemed group fall out of favor on Wall Street as investors shift their attention to other sectors. That's the right time to take a closer look for bargains. Coca-Cola (NYSE: KO), for example, is in negative territory so far this year (down 5%) despite having posted solid results to date. Let's look at some big reasons to like this stock right now.
While many consumer-facing companies are showing weaker sales growth trends lately, Coke isn't having that problem. Organic sales gains were 11% this past quarter, outpacing PepsiCo's (NASDAQ: PEP) 9% boost in its beverage segment. Sure, Coke's sales volumes were flat, meaning all of its gains came from higher prices, but that's a common issue among consumer staples companies right now.
Source Fool.com
