Coca-Cola Co KO, will be reporting its fourth-quarter earnings on Feb. 13. Wall Street expects 49 cents in EPS and $10.64 billion in revenues as the company reports before market hours.

The company is known for being one of the most popular and iconic soft drink brands in the world. Created by John Stith Pemberton in 1886, Coca-Cola has become a global beverage phenomenon. It represents the fourth-largest holding in Warren Buffett‘s Berkshire Hathaway portfolio, with a 7.05% stake. As a result, Buffett holds 9.23% of Coca-Cola’s stock.

Here are the areas of focus for analysts in the company’s Q4 earnings report, and how the stock measures up against Wall Street forecasts.

Coca-Cola Investment Thesis 

Coca-Cola boasts a high brand value and a diversified portfolio of beverages, providing resilience against market fluctuations and the challenges faced in 2020 due to the pandemic. The company’s ability to generate profits through licensing its trademark to beverage manufacturers enhances its revenue streams and profitability. It also has a history of rising dividend payouts.

Despite facing challenges, Coca-Cola maintains a stable market share in North America, its largest market.

The rising demand for healthier and more natural products poses a challenge to Coca-Cola’s traditional sugary and less nutritious beverage offerings. However, the company’s strategic investments in healthier segments may mitigate this risk.

The emergence of weight loss drugs, such as Novo Nordisk’s Ozempic and Wegovy and Eli Lilly’s Mounjaro, poses a potential threat to Coca-Cola’s business. These drugs may lead to reduced demand for high-calorie or unhealthy beverages.

Also Read: How To Earn $500 Per Month From Coca-Cola Stock KO

Coca-Cola Analysts' Focus & Consensus Ratings

Q4 Analysts' Focus: Analysts will be carefully evaluating the potential impact of evolving consumer preferences and competition from weight loss drugs on Coca-Cola’s business. Coca-Cola’s strong brand value, stable market position, history of dividends, and adaptability are positive indicators to an investor evaluating the business.

However, potential threats underscore the importance of thorough risk assessment and ongoing evaluation of Coca-Cola’s strategy in navigating these challenges.

Ratings & Consensus Estimates: The consensus analyst rating on Coca-Cola stock stands at an Overweight currently with a price target of $66.95.

KO Price Action: Shares of Coca-Cola were trading 0.6% lower at $59.20 at the time of publication Monday.

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