The business delivers on execution—four consecutive earnings beats, a wide economic moat, and margins that rank best-in-class—but at a forward P/E of 23.2x and a PEG of 4.14, the current price fully reflects those qualities, leaving almost no upside headroom, an unfavorable risk/reward geometry, and a free cash flow conversion rate that lags the headline earnings quality.
Thesis pillars
- Consistent Earnings Beat Record→Stable
- Sparkling Category Concentration↓Deteriorating
- Wide Moat Best In Class Margins→Stable
- +2 more pillars — see the Why tab for full reasoning
Coca-Cola Company (The) (KO) Stock Analysis
Range Bound setup
Consumer Defensive · Beverages - Non-Alcoholic
Wait for pullback to $78.14. Weak momentum — blocks BUY_NOW at $82.27. Engine's entry $78.14 (5% below current) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier.
The Coca-Cola Company sells beverages in more than 200 countries and territories through independent bottling partners and consolidated operations, owning or licensing brands across sparkling soft drinks, water, sports, coffee, tea, juice, and emerging categories. In 2025, the... Read more
Wait for pullback to $78.14. Weak momentum — blocks BUY_NOW at $82.27. Engine's entry $78.14 (5% below current) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier. Chart setup: RSI 48 mid-range, Bollinger mid-band. Earnings in 3 days. Wait until post-earnings. Score 5.6/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news boost analyst 0.70, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 3d<=7d. Suitability: moderate.
About Coca-Cola Company (The)
About Coca-Cola Company (The)
The Coca-Cola Company sold 33.8 billion unit cases worldwide during 2025, with Trademark Coca-Cola representing 47% of worldwide unit case volume and sparkling soft drinks accounting for 69% of total volume across more than 200 countries and territories. Products bearing the company's trademarks are consumed at a rate of 2.2 billion servings per day. The company operates across five segments — EMEA, Latin America, North America, Asia Pacific, and Bottling Investments — with unit case volume outside the United States representing 84% of the global total in 2025.
The Coca-Cola Company's business separates into concentrate operations — selling beverage bases and syrups to authorized bottling partners — and finished product operations primarily through the Bottling Investments segment. Concentrate operations generate higher gross profit margins, while finished product operations generate higher net operating revenues per unit. The five largest independent bottling partners in 2025 — Coca-Cola FEMSA, Coca-Cola Europacific Partners, Coca-Cola HBC AG, Arca Continental, and Swire Coca-Cola — collectively handled 44% of total worldwide unit case volume. Mexico, China, Brazil, and India together accounted for 33% of worldwide unit case volume, representing the company's largest non-U.S. markets. In many markets, PepsiCo is the primary competitor, alongside Nestlé, Keurig Dr Pepper, and Danone. The company has also directly entered alcohol ready-to-drink beverages in multiple markets outside the United States.
Show full overview
Supply chain disruption risk centers on raw material sourcing: the 10-K discloses that some ingredients and supplies are available from only a limited number of suppliers, or from a sole supplier, with contingency plans that may not prevent shortfalls. Inflationary pressures on input costs — including agricultural commodities, packaging, energy, and transportation — continued through 2025 and are expected to persist into 2026. If price increases on finished products are insufficient to offset higher sourcing and manufacturing costs, profitability may be adversely affected, depending on competitive dynamics with PepsiCo and private-label alternatives.
See also: Consumer Defensive · Beverages - Non-Alcoholic
From Coca-Cola Company (The)'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-26Recent Developments — Coca-Cola Company (The)
Latest news
- NEWS Coca-Cola Rose 5% Over the Last 30 Days. Here’s What to Expect in 2026 - TIKR.com — TIKR.com positive
- NEWS Coca-Cola Co (KO) Stock Price, Trades & News - GuruFocus — GuruFocus neutral
- NEWS Coca-Cola vs. Monster Beverage: Which Stock Is the Better Investment? - Zacks Investment Research — Zacks Investment Research neutral
- NEWS Coca-Cola vs. Monster Beverage: Which Stock Is the Better Investment? - Yahoo Finance — Yahoo Finance positive
- NEWS Coca-Cola rallies after organic sales smash estimates; PEP and KDP also gain (KO:NYSE) - Seeking Alpha — Seeking Alpha positive
Generated 2026-07-26T08:02:04Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductsparkling soft drinks69%10-K Item 1: 'Sparkling soft drinks represented 69% of our worldwide unit case volume in both 2025 and 2024.'
- MEDIUMProductTrademark Coca-Cola47%10-K Item 1: 'Trademark Coca-Cola accounted for 47% of our worldwide unit case volume in both 2025 and 2024.'
- MEDIUMcounterpartyfive bottling partners44%10-K Item 1: 'these five bottling partners combined represented 44% of our total worldwide unit case volume'
- MEDIUMGeographicMexico, China, Brazil and India33%10-K Item 1: 'Mexico, China, Brazil and India, which together accounted for 33% of our worldwide unit case volume'
- HIGHSuppliersole supplier10-K Item 1A: 'Some of the raw materials and supplies used in the production of our products are available from a limited number of suppliers, or from a sole supplier'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $78.14. Weak momentum — blocks BUY_NOW at $82.27. Engine's entry $78.14 (5% below current) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier. Chart setup: RSI 48 mid-range, Bollinger mid-band. Earnings in 3 days. Wait until post-earnings. Target $83.97 (+2.1%), stop $74.70 (−10.1%), A.R:R -0.7:1. Score 5.6/10, moderate confidence.
Take-profit target: $83.97 (-3.4% upside). Target $83.97 (+2.1%), stop $74.70 (−10.1%), A.R:R -0.7:1. Stop-loss: $74.70.
Concentration risk — Product: sparkling soft drinks (69.0%); Concentration risk — Supplier: sole supplier; Analyst target reached - limited upside remaining.
Coca-Cola Company (The) trades at a P/E of 25.5 (forward 23.6). TrendMatrix value score: 3.9/10. Verdict: Buy (Wait for Entry).
35 analysts cover KO with a consensus score of 4.1/5. Average price target: $88.
What does Coca-Cola Company (The) do?The Coca-Cola Company sells beverages in more than 200 countries and territories through independent bottling partners...
The Coca-Cola Company sells beverages in more than 200 countries and territories through independent bottling partners and consolidated operations, owning or licensing brands across sparkling soft drinks, water, sports, coffee, tea, juice, and emerging categories. In 2025, the Coca-Cola system sold 33.8 billion unit cases, with Trademark Coca-Cola accounting for 47% of worldwide unit case volume and sparkling soft drinks representing 69% of total volume.