Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track record of the firms behind them -- so individuals can make better investing decisions.
In addition to following these professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 120,000 members, many of whom demonstrate better investing insight than published analysts do.
Coca-Cola (NYSE: KO) has been gaining more favor in CAPS lately -- after seeing its stock upgraded from its three-star rank to four stars last year, the beverage maker has recently touched full-blown five-star status. With 4,180 members giving their opinion on Coca-Cola, there's plenty of analysis and commentary explaining the recent optimism. (That insight as well as much more information on Coke's stock is available for your perusal after you sign up for CAPS, free.)
Like other large, diversified consumer companies such as Procter & Gamble (NYSE: PG) and McDonald's (NYSE: MCD), Coke’s business is expected to hold up better than others during a bad economy. It pays a solid dividend, which it has grown for the past 46 years, and generates plenty of free cash flow to fund the payout.
What's behind that consistent cash flow is one of the world's most-recognized brands -- one that is embedded in even remote regions and cultures. Like Pfizer (NYSE: PFE), Intel (Nasdaq: INTC), and ExxonMobil (NYSE: XOM), a large percentage of Coke’s revenue is derived from international markets, diversifying its revenue stream.
At this point, Coca-Cola is still expanding at a solid clip. In the most recent quarter, earnings per share grew by 14% and revenues grew 9%. Its Coke Zero brand grew unit case volume by 30% in the U.S. and is now sold in more than two dozen countries. The company sees emerging markets as key to growth, and although PepsiCo (NYSE: PEP) expects currency changes to hurt its profits in the fourth quarter, Coke still sees some favorable currency impact on its full-year operating income. Showing strength in the face of weakness, 95% of CAPS members rating Coca-Cola expect it to outperform the market.
To see what the very best CAPS analysts are saying now about Coca-Cola -- as well as other winning stocks they are picking -- head over to CAPS and have a look.
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