Buffett Stock Portfolio: Top 10 Stock Picks for 2024

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

Stake Value as of Q2 2024: $25,460,000,000

The Coca-Cola Company (NYSE:KO) is an American multinational company that manufactures and sells soft drinks, alcoholic and non-alcoholic drinks, beverage concentrates, and syrups. It is one of the most renowned companies in the world, with its products sold in more than 200 countries and territories. According to a report, ‘Coca-Cola’ is the second most understood word in the world after ‘okay’.

The company has been caught in the crossfire of the ongoing conflict in the Middle East, with its logo being part of numerous others being circulated on social media as part of a boycott campaign against Western products. In November last year, Turkiye’s parliament voted to remove Coca-Cola from restaurants and shops in the country. On the other hand, the boycott of Coke in several Asian markets has led to a resurgence of local cola brands to compete against it. The company also faces headwinds amid rising global inflation rates and foreign exchange turbulence.

However, The Coca-Cola Company (NYSE:KO)’s overall financial position remains strong. In Q2 2024, the company reported a revenue of $12.4 billion, up 3% from last year. Operating margin was 21.3%, compared to 20.1% in the same quarter in 2023. Earnings per share totaled $0.84, beating analysts’ estimates of $0.81. The improved results were driven by continued price increases, which were hiked by 13% in Q1 and then 9% in Q2 due to high inflation in some markets.

The company also experienced growth across the ASEAN and South Pacific region, fueled by its sparkling portfolio. The business has also shown signs of recovery in India after a sedate start to the year, driven by a surge in sales of Fanta and Sprite, and strong performances by local products such as Mazaa and Thumbs Up.

The Coca-Cola Company saw pressure in Europe, due to a decrease in foot traffic and harsh weather in different parts of the continent. To capture value, the company is investing in sponsorship of various highly anticipated events such as music concerts and sports events. It was one of the sponsors of the Paris Olympics and Euro 2024 Football Championship. It is also focusing on brands such as Fuze Tea and Powerade, which have momentum in Europe, to drive sales.

Despite some headwinds, the company’s outlook looks promising. It has also raised its guidance for 2024, and now anticipates an organic revenue growth of 9-10%. EPS is also expected to rise 13-15% for the full year. Wall Street analysts have consensus on the stock’s Buy rating and forecast a 2-3% appreciation in its share price. The number of hedge funds having investments in Coca-Cola has also increased from 62 in Q1 to 68 in Q2, according to Insider Monkey.

The Coca-Cola Company (NYSE:KO) is among the top picks from the Buffet stock portfolio, with the hedge fund having investments of over $25.4 billion in the company.