Coca Cola Co (NYSE:KO)

CAPS Rating: 5 out of 5

The world's leading soft-drink company, Coca-Cola's fountain includes everything from Coke to Poweraid, Dasani water to Snapple.

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Player Avatar HMJoshi (< 20) Submitted: 8/8/2012 1:54:49 AM : Outperform Start Price: $39.04 KO Score: -10.25

KO could see a sales growth of about 5% for the next two years. Applying the current P/E to the 2013 EPS estimate, KO has good potential to climb to as high as $85 in the next 12 months, and is a good low volatility play in this challenging economic environment considering its stable and solid dividend that it offers. KO currently trades at about 19 times earnings, which is below its historic average forward P/E of 22 times earnings. KO's dividend yield is about 2.7% and the company has consistently increased both its earnings and dividends. In fact, 2012 marked Coca-Cola's 50th consecutive year of annual dividend increases, pushing it closer to 3%, which is impressive.

Member Avatar Teacherman1 (47.86) Submitted: 8/8/2012 10:07:40 AM
Recs: 0

codespeed

I assume that $85 price in the next 12 months is before taking into consideration the up coming 2 for 1 reverse split.

Or did they decide not to do that?

KO is a "good as gold" company, but not real exciting as a growth company, unless there is some kind of catalyst.

I'm hoping that the reverse split might just be that catalyst.

Good luck if you actually own in real life.

JMO and worth exactly what I am charging for it.

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