Coca-Cola Just Raised Its Outlook Again: Time to Buy the Stock?
The stock keeps trailing the market, but Coca-Cola's (NYSE: KO) business is just not slowing down. The beverage giant recently raised its 2023 outlook for the second consecutive quarter. Profit remains strong even as consumer spending patterns shift, and market share is rising despite Coke's already dominant position in the on-the-go beverage niche.
Investing is about the future, though, and that's what Wall Street is concerned about. Many traditional soda products are losing traction in the market, clouding the long-term growth outlook. Slowing spending and inflation trends might make it harder to boost sales in 2024 as well. Against that mixed backdrop, let's look at whether the stock remains a good buy option for patient investors.
If you were worried about Coke's growth potential in a tough selling environment, this earnings report should ease those concerns. Organic sales were up 11% overall, on par with the prior quarter's expansion rate. But the good news is that this growth came from a mix of rising prices and higher sales volumes. Last quarter, in contrast, Coke relied entirely on price hikes as volume was flat. "We delivered an overall solid quarter," CEO James Quincey said in a late-October press release.
Source Fool.com
