Soft drink veteran Coca-Cola (NYSE: KO) has been a popular investment for decades. The stock offers a comfortable blend of generous dividends, solid long-term business growth, and a large portfolio of household-name beverage brands. But Coke has also underperformed the broader market and key competitors in recent years, and some investors say that the company is running out of untapped markets.
Read on to see Coca-Cola's bullish and bearish qualities, as presented by two of The Motley Fool's consumer goods writers. These diverse analyses will help you build your own Coke strategy, accounting for the company's strengths as well as its weaknesses.
Anders Bylund (Coca-Cola Bull): Like any other company, Coke has its shortcomings. The soft drink giant's sales took a harder hit from the COVID-19 crisis than archrival (NASDAQ: PEP), since Pepsi's large portfolio of snack foods softened that company's fall. Some bearish investors argue that Pepsi's more diverse product mix is a healthier business platform than Coca-Cola's sharp focus on various beverages. As a result, Coke's stock has lagged behind Pepsi in the coronavirus era.
Source Fool.com