Always Coca Cola?

Published 1 month ago at 24 May 2022

Always Coca-Cola? That’s the thinking! Many consumers should always have the ability to buy a can of coke - even in a recession. That’s why many investors see Coke as a recession buster! 
 
One thing that dip buyers might want to note is that the seasonals for Microsoft are very strong right now.  
 
Coca-Cola earnings were very good in April: Sales surged 16% to $10.5 billion, beating Wall Street's expectations of $9.8 billion. Profits of $2.8 billion, or 64 cents a share, rose 24% from a year ago — surpassing consensus estimates of 58 cents a share. 
 
Furthermore, despite rising aluminium prices and other inflationary forces the company has a strong outlook for the rest of the year. The ‘recession proof’ label that Coke has may also attract further investment. Remember that Warren Buffet is a big backer in Coke stoke and he currently has 400 million shares! 
 
Over the last 10 years Coca-Cola has lost value only once between May 24 and July 21. The average return has been +2.82% and the maximum return has been over 7.16% at 11.74%.  
 
Does that mean Coca-Cola shares will gain again this year? Are they a good recessionary proof play? 
 
 
 
Major Trade Risks: 
 
Any bad news for Coca-Cola stock will negate this outlook.  


This website uses cookies. By continuing to use this website you agree to this. Learn more Accept