Jim Cramer Says You Should Buy These 5 Stocks

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

Number of Hedge Fund Holders: 70

The Coca-Cola Company (NYSE:KO) makes and sells beverages. The journalist investor gave the company a Buy rating during the Discussed Stock segment of his show on May 2. He advised investors to “buy the dip” on some companies, including Coca-Cola, that were posting market-beating earnings but their stock had performed poorly since the market was “not willing to pay as much for those future earnings in this new environment”. 

On April 26, Truist analyst Bill Chappell maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $75 from $70, highlighting that the first quarter results of the firm were strong with 18% organic growth “well exceeding” expectations. 

Among the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE:KO) with 400 million shares worth more than $23 billion. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Coca-Cola Company (NYSE:KO) was one of them. Here is what the fund said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (The Coca-Cola Company (NYSE:KO)). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”