The Warren Buffet stock is now 20% down
Shares of Coca-Cola have fallen recently, and is down by almost 20% since the beginning of May. Coca-Cola makes up around 6.2% of Warren Buffett's portfolio, according to the CNBC Berkshire Hathaway portfolio tracker.
Weight-loss drug Ozempic is sapping demand
Concerns that weight-loss drugs like Ozempic and Wegovy are leading consumers to buy fewer groceries and consumer fewer calories have pushed down several stocks like Coca-Cola, PepsiCo & even McDonalds.
A recent quote from Walmart's U.S. CEO John Furner on Bloomberg mentioned that such drugs are leading to a slight pullback in the consumer's basket, calling it "Just less units, slightly less calories."
Drugs like Ozempic which works as an appetite suppressent are impacting the packaged food and beverage industry. Walmart is looking at anonymised data that shows shopping habits change once people start taking weight-loss drugs. Ozempic works by mimicking a naturally occurring hormone in one's digestive system that tells the person that he is full. This will lead to the drug taker to consume less calories as the body will feel full. Walmart also noted that weight-loss drugs have given it a bump in revenue.
Consumer Staples have under performed in the last one year
Consumer staple stocks have mostly underperformed the S&P 500 in the last one year. The S&P 500 has gained 20% in the last one year, whereas Coca-Cola & PepsiCo have mostly been flat. Apple has gained 27% in the last one year!
Coca-Cola is now undervalued
Morningstar carries a 4-star rating for Coca-Cola, assigning it a fair value of $60. Now is the perfect opportunity to look at picking up shares of Coca-Cola as it is trading at a discount to its fair value.
I have marked out support levels at $52 & $48 which will be very attractive to buyers looking to add shares of Coca-Cola.
$Coca-Cola(KO)$Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
I think ko is going to a good 3rd quarter and 4th quarter as well I don’t listen do the media any more the keep saying how earnings are going to be really bad and turns that a lot of companies are having good earnings
I see KO as slightly better for value investors who seek current income and stability though most any conditions, at least when viewed over longer periods.
great stock to buy: stable, well managed, strong brand, cash flow, nice dividend, and bargain price. I'm adding to my long position.
When you sell the volatile crappy stocks like LCID, and you buy KO, you experience the peace of mind that allows you to sleep at night.
Earnings Tuesday. Good entry point IMHO. Good yield, reinvesting dividends. Long KO.
if KO reports as good as pepsi the we should see a nice rebound maybe surpass the 60 dollar barrier
Bought the dip last week and going to hold this for eternity
If soft drinks get in trouble than KO will suffer a lot more than pep
Better buy KO while you can at these ridiculously low prices.
still undervalued, and cheaper than PEP (I have both)