Wednesday, January 26, 2011

Stock Idea: The Coca-Cola Company (KO, $62.96)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

Coca-Cola (KO)
stock has spent the last ten years trading roughly between $40 and $60 dollars per share, and it is just now showing signs that it's ready to break out from that trading range. I would buy KO today. The dividend is $1.76 per share, which represents a yield of 2.80%. Consensus earnings growth for 2011 and 2012 is project at 10.3% and 10.1%. The PE is 19.31 and the beta is quite low at 0.59.

(Many stocks have made no significant advances in the recent decade. Four major hits came to U.S. stock markets during that time: the Sept. 11 terrorist attack, the ensuing recession, the 2008 financial crisis, and its ensuing recession. These events cost American companies lots of money; many were financially devastated, e.g. real estate and financial companies; and some even closed for business, e.g. Bear Stearns.)

KO looks like it will trade in the low $60's in the near-term (approximately $62.50-$65.50), and I expect the next move to be up. I expect that both short-term investors and medium-term investors could be happy with KO's investment returns. Read about the company at


The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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