Coca-Cola Stock's October Comeback: 52-Week Low To Recovery

Coca-Cola Co KO shares have gone up by 7.8% from their lowest point in October, reaching $56.49 as the month's trading comes to a close. Shares of soft drink and food stocks experienced volatility in October in possible reaction to comments this month from Walmart Inc WMT suggesting weight-loss drugs are impacting food sales. Additionally, rising yields could negatively impact dividend stocks such as Coca-Cola.

What's Going On With Weight Loss Drugs?

In 2023, prescription weight loss drugs like Ozempic, Wegovy and Mounjaro have gained significant attention, impacting both pharmaceutical and food/drink companies.

The rising interest in these GLP-1 drugs has caused pharmaceutical stocks to increase, while food and beverage companies have experienced stock value stress due to expectations of reduced demand.

A Morning Consult survey identifies the consumer segments most interested in these weight loss medications...Read More

See Also: Why Kintara Therapeutics Stock Is Down 70% Tuesday

What Happened With KO Earnings This Month?

In the third quarter of FY23, Coca-Cola achieved year-on-year sales growth of 8%, reaching $11.95 billion, surpassing the analyst consensus estimate of $11.44 billion.

This growth was driven by a 2% increase in concentrate sales and a 9% growth in price/mix. Additionally, the unit case volume saw a 2% expansion during the quarter, contributing to an 11% increase in organic revenues...Read More

How Do Higher Rates Impact KO Stock?

When concerns arise about potential interest rate increases, it can result in higher borrowing costs for consumers and businesses. For companies such as Coca-Cola, which rely on consumer spending and have debt, higher interest rates can raise their cost of capital.

This can, in turn, reduce the current value of the company's future cash flows, which may lead to a drop in its stock price.

Coca-Cola is also known for its dividend payments, attracting income-focused investors. When interest rates go up, fixed-income investments like bonds become more appealing compared to stocks that pay dividends.

As a result, some investors may shift away from stocks like Coca-Cola, which can potentially lead to a decline in its stock price.

According to data from Benzinga Pro, KO has a 52-week high of $64.99 and a 52-week low of $51.55.