Prediction: This Is Where Coca-Cola Stock Could Be in 5 Years
Coca-Cola (NYSE: KO) shareholders haven't enjoyed sparkling returns lately. The stock rose less than 30% in the five years ended in mid-September, trailing the 53% boost in the S&P 500 over that time. The picture doesn't improve much when you include dividend payments, either. Coke's total return in the past five years has been roughly 47% compared to the broader market's 67%.
There's no way to know for sure whether the beverage giant will continue trailing the market in the years to come. But there are some good reasons to expect better returns from here. Let's take a closer look.
Wall Street is concerned about Coke's flat sales volumes right now, but look closer and you'll see no sign of weakness in this stellar business. Organic sales jumped 11% in the most recent quarter as the company showed off its pricing power by passing along higher costs. Coke benefited from consumers' rising demand for newer brands and more convenient packaging options, too.
Source Fool.com
