10 Best Consumer Staples Stocks To Buy Now

7. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Investors In Q1 2024: 62

The Coca-Cola Company (NYSE:KO) sells carbonated beverages and other consumables. The fact that it’s one of the two major global carbonated beverages brands means that The Coca-Cola Company (NYSE:KO) is quite stable in terms of its future outlook. However, investors are always yearning for growth, and the firm has to deliver in this area to sustain its market advantage and a 3% dividend yield. On this front,  while The Coca-Cola Company (NYSE:KO) has to maintain its presence in the developed world, equally, if not more importantly, its growth in the developing world and Latin America is key. This has to be accompanied by new products as well to allow The Coca-Cola Company (NYSE:KO) to ensure that its brand does not become stale with age. In short, the firm needs to sustain its developed market presence, it has to continue to innovate by launching new products and ensure that it establishes a strong foothold in the developing world.

The Coca-Cola Company (NYSE:KO)’s Q1 2024 earnings call saw management share information on all these fronts. They outlined that “about 25% of the growth comes from innovation,” and also shared struggles in the developing world with high inflation and a stronger US dollar:

However, across developing emerging markets there continues to be a handful of markets that are experiencing intense inflation which is driving elevated pricing offset by incremental currency headwinds. We’re proactively managing these volatile environments and we feel confident we have the playbook to navigate challenges locally while continuing our momentum at a consolidated level.