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Time to Buy Coca-Cola?

By Chris Hill – Feb 27, 2014 at 7:09PM

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For investors waiting for the right moment to buy Coca-Cola, has the time finally come?

In this segment from Thursday's Investor Beat, Motley Fool analyst David Hanson tells host Chris Hill why Coca-Cola (KO 0.88%) is a stock he's putting on his watchlist today. David looks at the phenomenal business of Coca-Cola and its legendary supply chain but notes that the stock itself has been largely flat over the past year despite the market gains. That's made him sit up and take notice that this might be a great business that's coming back down to a fair price.

However, many investors are worried about the secular decline in popularity of sugary carbonated sodas in the United States. David says that while that may be a slight concern, the popularity of those beverages isn't going to vanish anytime soon, and in the meantime, Coke has some incredible purchasing power to acquire other great drinks, where it can use its supply chain to make those new brands thrive.

Chris Hill owns shares of Coca-Cola. David Hanson has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coca-Cola. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Coca-Cola Stock Quote
Coca-Cola
KO
$64.35 (0.88%) $0.56

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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