Jim Cramer’s 10 Handpicked Stocks to Watch

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

Number of Hedge Fund Investors: 68

Jim Cramer expressed concern about The Coca-Cola Company (NYSE:KO)’s recent stock performance. He acknowledged that The Coca-Cola Company (NYSE:KO) is a solid company but believes the stock has risen too quickly, now trading at 26 times its earnings. Cramer feels that this valuation is too high and suggests waiting for the stock to drop to more reasonable levels before considering it as an investment.

“The Coca-Cola Company (NYSE:KO) has run up way too far, way too fast. It’s a good company, but at 26 times earnings? No, that doesn’t work for me. Let it come in.”

The Coca-Cola Company (NYSE:KO), a leading force in the non-alcoholic beverage market, is set for long-term growth due to its wide range of products, including soda, water, juices, energy drinks, and coffee. In Q2 2024, The Coca-Cola Company (NYSE:KO) reported net revenue of $12 billion, marking a 6% increase from the previous year, driven by strong sales volumes and strategic price adjustments. Organic revenue grew by 11%, with particularly strong performance in Latin America and Asia.

The Coca-Cola Company (NYSE:KO)’s EPS of $0.78 surpassed expectations of $0.72, fueled by higher demand for Coca-Cola Zero Sugar and its ready-to-drink coffee and sports drinks. The Coca-Cola Company (NYSE:KO) continues to strengthen its market position through innovations in zero-sugar beverages and energy drinks and by leveraging partnerships, like its ongoing collaboration with Monster Beverage Corp. (NASDAQ:MNST).