Zacks Investment Ideas feature highlights: Coca-Cola, PepsiCo, Berkshire Hathaway and Blackrock

For Immediate ReleaseChicago, IL – April 8, 2025 – Today, Zacks Investment Ideas feature highlights Coca-Cola KO, PepsiCo PEP, Berkshire Hathaway (BRK.B) and Blackrock BLK.Still Time to Buy Coca-Cola Stock as a Defensive Hedge?The consumer staples sector typically draws interest during economic downturns as consumers buy these products regardless of economic conditions. Seeing as beverages are one of the most essential consumer items, Coca-Cola stock is historically known to be a pleasant hedge against market volatility when economic uncertainty arises.This scenario is playing out with President Trump’s “Liberation Tariffs” rocking markets over the last few trading sessions. Amid the mayhem, Coca-Cola's stock hit a 52-week peak of $73 a share last Thursday and is sitting on +9% gains this year compared to the S&P 500’s 14% decline and rival PepsiCo’s 6% drop.Brand Recognition & Institutional OwnershipThanks to its global presence as one of the most recognized brands in the world, Coca-Cola’s stock has remained a primary holding of many mutual, pension, and hedge funds. Limiting panic selling that may arise from retail investors, 70% of Coca-Cola shares are owned by institutional shareholders including Berkshire Hathaway, Blackrock and Vanguard Group.What also helps Coca-Cola navigate more sensitive economic fluctuations is the company’s core focus on its flagship soda and other drink products as opposed to Pepsi, which has a diversified portfolio of snack products that can see demand wayward.Dividend ReliabilityWhile Coca-Cola and Pepsi both share the prestigious Dividend King title, it’s noteworthy that Coca-Cola still has the reliability edge. Having a current annual dividend yield of 2.92%, Coca-Cola has increased its dividend for 64 consecutive years while Pepsi has done so for 53 consecutive years.Coca-Cola’s Steady GrowthCoca-Cola is expected to post 2% sales growth in fiscal 2025 with its top line projected to expand another 5% in FY26 to $50.49 billion. Furthermore, annual earnings are slated to increase by 3% this year and are projected to spike another 8% in FY26 to $3.20 per share.KO Valuation ComparisonFollowing its most recent rally, Coca-Cola stock trades at a 23.6X forward earnings multiple which is slightly above its Zacks Beverages-Soft drinks Industry average of 19.1X and Pepsi’s 17.7X. However, KO does trade beneath its decade-long high of 28.5X forward earnings and is on par with the median of 23.4X during this period.Bottom LineFor now, Coca-Cola stock lands a Zacks Rank #3 (Hold). Despite trading at a premium to its peers in terms of P/E valuation, Coca-Cola stock has lived up to the notoriety of being a reliable defensive hedge against economic uncertainty. After recently hitting 52-week peaks there could be better buying opportunities but holding KO shares may be ideal as markets adjust to the implementation of an ongoing trade war.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report BlackRock (BLK): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks