Coca-Cola Stock’s Bullish Signal: 1 Green Flag You Can’t Ignore in 2025
Coca-Cola's stock just flashed a rare bullish signal—here's why Wall Street's soda addiction might actually pay off this time.
The secret's in the syrup: While legacy markets stagnate, emerging economies are chugging Coke like it's 1999. The numbers don't lie—when disposable incomes rise, the red cans follow.
Dividend aristocrat flex: Sixty consecutive years of payout increases makes even crypto maximalists pause. (Though let's be honest—they'd still rather ape into a memecoin.)
Bottling up efficiencies: New AI-driven supply chain optimizations are squeezing margins tighter than a cap on a shaken bottle. The fizz? Pure profit.
So is Big Soda the new Big Tech? Hardly. But in a market drunk on speculative assets, sometimes the boring play is the ultimate power move.
Image source: Getty Images.
Here's a great green flag for Coca-Cola: It's reasonably valued at recent levels, with a recent forward-looking price-to-earnings (P/E) ratio of 22.8 slightly below its five-year average of 23.3 and a price-to-sales ratio of 6.2 a smidge below its five-year average of 6.3.
Why might you invest in it, especially if you're worried about the effect of tariffs and/or a possible recession? There are plenty of reasons to invest in Coca-Cola:
- It's somewhat tariff-resistant, with much of its business done locally around the world. And it's ready to switch some packaging from aluminum to plastic if needed.
- Its business is somewhat defensive, too: In an economic downturn, consumers might delay buying a new car or going on vacation, but they may still enjoy a relatively inexpensive treat such as a soda.
- One of its competitive advantages is its powerful brand, ranked seventh in the world by Interbrand in 2024, with an estimated value of $61.2 billion.
- It's a dividend-paying stock, with a recent dividend yield of 3% -- and it's been hiking that payout for 63 consecutive years (though, admittedly, slowly). A 3% yield can help you keep up with inflation, and you can expect stock-price appreciation over the long run, too.
- It's diversified, with water, sports, coffee, and tea brands such as Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, and Gold Peak.
So give Coca-Cola some consideration for your long-term portfolio, especially if you're looking for rather dependable income.
