5-Star Stocks Poised to Pop: Coca-Cola

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, soft-drink behemoth Coca-Cola (NYSE: KO  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Coca-Cola's business and see what CAPS investors are saying about the stock right now.

Coca-Cola facts

Headquarters (founded) Atlanta (1886)
Market Cap $178.4 billion
Industry Soft drinks
Trailing-12-Month Revenue $47.5 billion
Management Chairman/CEO Muhtar Kent
CFO Gary Fayard
Return on Equity (average, past 3 years) 32.4%
Cash/Debt $17.0 billion / $32.5 billion
Dividend Yield 2.5%
Competitors Dr Pepper Snapple Group

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 6,550 members who have rated Coca-Cola believe the stock will outperform the S&P 500 going forward.  

Earlier this week , one of those bulls, codespeed, tapped the stock as a particularly solid income opportunity:

[Coca-Cola] could see a sales growth of about 5% for the next two years. Applying the current P/E to the 2013 EPS estimate, [Coca-Cola] has good potential to climb to as high as $85 [not including the stock split] in the next 12 months, and is a good low volatility play in this challenging economic environment considering its stable and solid dividend that it offers. ... [Coca-Cola's] dividend yield is about 2.7% and the company has consistently increased both its earnings and dividends. In fact, 2012 marked Coca-Cola's 50th consecutive year of annual dividend increases.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Coca-Cola may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Coca-Cola and PepsiCo. Motley Fool newsletter services have recommended buying shares of Coca-Cola and PepsiCo, as well as creating a diagonal call position in PepsiCo. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (2) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 10, 2012, at 10:41 AM, sept2749 wrote:

    I love KO it has been good to me but I need lots more. I am a member of MF Income investor and they have KO on hold - they probably feel it's too pricey right now. I would like to know your feelings and the feelings of others. Also, is there a date where you must be a stockholder to get the split?

  • Report this Comment On August 10, 2012, at 10:53 AM, swedenclunk wrote:

    Just sold KO having held it all the way from 45. Not an expert, but the feeling I get is todays it is a safe haven purchase. For me at 46 I want something with more growth. It was a hard choice.But it is one stock which won't keep you awake at night.

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10/28/2016 3:29 PM
KO $42.29 Up +0.17 +0.40%
Coca-Cola CAPS Rating: ****