Will Coca-Cola Ever Go Flat?
Then there are stocks that somehow never get cheap. It is as if they have become immune to criticism, shielded from the market's punishment regardless of how underwhelming their performances might have been.
This would seem to describe Coca-Cola
The fact is, volume in the soft drink industry has been down across the board -- neither Pepsi or Nestle
However, as has been the case for quite some time, Coca-Cola's "flat" performance really didn't seem to matter. The stock, in fact, which has been up by as much as 15% for the year to date, went up by more than 2% in the days following the earnings report.
The reason is simple. Unlike most companies, Coca-Cola has shown an uncanny ability to "struggle" and still grow market share at the same time.
This is a quality that is shared by other iconic brands like McDonald's
I won't argue that this level of trust is has been well earned. But I do wonder how long this can continue, especially with Coca-Cola now posting revenue declines in North America and Europe, which were both down 1% and 4%, respectively. The good news here is that the company has been able to offset its North American struggles with better volume growth in emerging markets like Africa and Latin America.