Why is Coca-Cola Co. (KO) Stock a Warren Buffet’s Favourite? 

• KO Stock fell 6.69% YTD and 3.96% in a year. 
• Coca-Cola is among the top four of Warren Buffet’s Berkshire Hathway portfolio.  

Coca-Cola Co. (NYSE: KO) is not performing well lately, with KO stock declining 1.82% in a week and 6.69% YTD, but Warren Buffet likes it. Berkshire Hathaway holds 400 Million Coca-Cola Co. Stock, or 7% of the company worth $24 Billion, and its fourth largest holdings. Also, the beverage giant is referred to as one of the best dividend stocks out there. 

Coca-Cola Co. (KO Stock) – Financial Analysis

Data suggests that Coca-Cola has consecutively raised its annual dividend payment for 61 years. Recently, the company announced a quarterly dividend of $0.46 to be paid on October 2, 2023, and an ex date of September 14, 2023. Considering the data from 2019 to 2022, the dividend per share has been $1.60, $1.64, $1.68, and $1.76, respectively. 

Between Q1 and Q2 2023, sales went from $10.99 to $11.99 Billion, while sales grew from 11.68% to 9.13%. Gross income changed from $6.69 Billion to $7.14 Billion, while gross income grew from 25.74% to 6.74%. NYSE: KO Stock fell 1.82% in a week, 3.65% in a month, 1.59% in three months, 6.69% YTD, and 3.69% in a year. 

Coca-Cola Co. (NYSE: KO) – Technical Analysis

NYSE: KO, at press time, is trading at $59.31, declining 0.87%; previous close and open were at $59.83 and $60.00, respectively. The 52-week range is from $54.02 to $64.99, suggesting it’s closer to the bottom of the barrel. With an average volume of 12.87 Million shares, the market cap is $256.477 Billion. 

The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 24.61, suggesting a fairly valued stock price. At the same time, the (ttm) earnings per share (EPS) is $2.41, hinting toward financial stability. Analysts placed a 2.77 rating for moderate buy and estimated a price target at $68.33 with a 15.2% upside. 

Coca-Cola Co. released Q2 earnings on July 26, 2023, where the reported revenue of $11.966 Billion surpassed the expected value of $11.742 Billion by 1.91%. In comparison, the reported earnings of $0.78 per share also beat the estimated value of $0.721 per share by 8.11%. Despite such positive earnings, the stock price fell 4.24% after the release. 

Compared to the previous quarter, the revenue gained 5.71%, while EPS swelled by 11.43%. The subsequent earnings will be released on October 25, 2023, where the revenue estimate is $11.467 Billion and EPS is $0.697. The (ttm) revenue is $44.14 Billion, and the year-over-year (YoY) quarterly revenue growth is 5.70%. 

Coca-Cola Co. (KO Stock) – Candle Exploration

KO stock price action has been swinging around the 200EMA and 50EMA since December 2022. The swings are getting lower, and the price is trading below them. Also, the RSI at 33.66 recently had a negative crossover. These factors hint towards a price drop. If so, the price should bounce off immediate support at $57.81 before going into the buying zone. 

Moreover, if the trend is reversed, Coca-Cola Co. Stock price could try to cross immediate resistance at $61.63. But it has to be a powerful momentum to traverse the selling zone. There is also a possibility that the share price will consolidate in a narrow range surrounding the EMA. This movement would provide them the strength to move higher. 

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