Topic: How To Invest

Pat: Can I have a quick opinion on Coca-Cola? Thanks.

Article Excerpt

The Coca-Cola Company, $77.98, symbol KO on New York (Shares outstanding: 2.3 billion; Market cap: $179.4 billion; www.coca-cola.com), is the world’s largest beverage company. It distributes a large number of major brands, including Coca-Cola, diet Coke, Sprite, Barq’s, Mr. PiBB, Fanta, Fresca and Dasani, through bottlers around the world. The company gets roughly 60% of its sales from outside the U.S. Coca-Cola faces rising competition from private-label soft drinks, which appeal to price-conscious consumers. However, the company is offsetting that challenge by increasing its sales in fast-growing foreign markets like China, India and Brazil, which have rapidly growing middle-class populations. In addition, Coca-Cola is attracting a wider range of customers by offering healthier products and more environmentally friendly packaging. Coca-Cola trades at 19.0 times this year’s forecast earnings of $4.10 a share. The stock yields 2.6%. Coca-Cola is okay to hold. hold. …