I think it is a great stock with an invaluable brand, but I am skeptical that it will do well in the next few years. Coke is fighting all the weight loss peptides developed by Lilly and Novo Nordisk. I see a significant portion of consumers drinking 3 cokes or more a day cutting soda out of their life, even diet soda. If Coke finds a way to make healthy products and does a good job marketing healthy products to consumers that outlook will change. Maybe Coke should look to get into the market of longevity tonics and low calorie high protein drinks and snacks.
I wouldn't count KO out, there are lot of poor 3rd world nations with a growing middle class that can afford to drink sodas from an American iconic brand. That is invaluable and difficult to quantify.
Current PEG for KO is 17, and the PE ratio is high at 28. I think a better PE ratio for KO is 21-24.
How well do narratives help inform your perspective?
