Coca-Cola has all of the necessary components to be a market-beating stock. Coca-Cola stock (NYSE:KO) is not immune to recessions but has a great track record.

Coca-Cola Stock Should Outperform in the Long Run.

The good thing about markets reaching new lows is that investors may get great prices on equities that are seldom on sale. Almost every member of the Dow Jones Industrial Average is down for 2022, with several equities down 20% or more.

Coca-Cola stock (NYSE:KO) is not among them. So far this year, the beverage giant has outperformed the market, falling just more than 4% vs. 20% for the Dow. This is due to its outstanding profit projection and confidence that its firm will be able to weather any possible downturns along the road.

With that larger picture in mind, let’s evaluate whether Coca-Cola stock (NYSE:KO) is a decent purchase right now.

Coca-Cola Stock: Prepared for Success

Coca-Cola was designed for this period in numerous ways. After two years of social estrangement, consumers’ expenditure on items like travel and experiences increased throughout most of 2022. Coke’s NYSE:KO) business was hurt more than PepsiCo’s (NASDAQ:PEP) during the epidemic’s early stages because it sells more on-the-go beverages. This concentration laid the groundwork for a larger comeback.

Organic sales increased by 16% in the second quarter, compared to 9% for Pepsi. Coke benefited from both broad pandemic-related demand changes and strong expansion measures.

Performance on the Margins

Coca-Cola is also excelling in terms of profits. Sure, profitability is down due to rising prices and the effect of a stronger US currency. However, the corporation is not having difficulty raising pricing by providing more tiny versions of its popular beverages. The company is also looking for ways to minimize expenses while leveraging Coke’s dominating industry position.

Is It a Good Investment?

The argument for Coca-Cola stock holding is straightforward. While its goods are recession-proof, a drop in consumer spending would undoubtedly harm sales and profitability. Coke’s worldwide business is also subject to market-specific concerns, like China’s recent epidemic lockdowns and the crisis in Ukraine. A higher currency will put pressure on returns, most certainly until 2023.

However, Coca-Cola has one of the most consistent growth patterns in the consumer sector. Branded beverage sales grow reliably and are not among the top goods that consumers abandon during a downturn. Coca-financial Cola’s health and rising dividend make it enticing to investors looking for stability.

If these characteristics align with your investment objectives, it makes no sense to postpone purchasing the stock to find a better deal. Trying to time the market may be profitable at times, but it is more likely to leave you out of the next market boom.

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