Can Coca-Cola Stock Keep Beating the Market?
Key Points
•Coca-Cola is beating the market this year, but it usually doesn't.
•It's enjoying confidence as investors look for safe stocks at a volatile time.
•The stock isn't cheap, and large gains will need corresponding revenue growth.
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•Coca-Cola (NYSE: KO) is doing something this year it doesn't usually do: beating the market. There are several reasons investors have been enthusiastic about the stock this year. It generally draws interest when the market is down because it provides protection in its stability, and investors choose it for its safety.
Over the past 30 years, Coca-Cola stock has seriously trailed the market, with a few moments of market-beating performance interspersed. You can guess when those moments were; like today, they were predominantly times when the market pulled back, and the shares benefited from the flight to safety.