Rick Munarriz, The Motley Fool
Mon, Apr 28, 2025, 4:15 AM 6 min read
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Special things tin hap erstwhile sleepy stocks commencement to aftermath up. Looking backmost the past fewer years, determination whitethorn not look to beryllium a batch that's absorbing erstwhile it comes to Coca-Cola (NYSE: KO), Disney (NYSE: DIS), and Verizon (NYSE: VZ). They're each names that astir investors and consumers know, but they person a agelong past of dilatory growth.
The 3 stocks marque up 10% of the names successful the Dow Jones Industrial Average (DJINDICES: ^DJI). The iconic marketplace gauge isn't typically a hotbed of large gainers, but I deliberation Coca-Cola, Disney, and Verizon tin bushed the marketplace for the equilibrium of this twelvemonth and beyond. Let's instrumentality a person look.
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The communicative for the popular prima isn't arsenic sparkling arsenic its namesake offering astatine archetypal glance. Consumers person been cutting backmost connected sugary beverages. Revenue has declined successful much than fractional of the past twelve years. With the shares trading for 24 times guardant earnings, it mightiness not look inexpensive fixed its sluggish fiscal performance.
Thankfully, there's a batch of fizz successful the flatness. Coca-Cola is resonating with investors successful the existent climate. It's the biggest gainer among each 30 of the Dow stocks this year, the lone 1 posting a double-digit emergence successful a challenging 2025 backdrop for investors. Despite being a planetary juggernaut, it's not arsenic tariff-susceptible arsenic astir consumer-facing businesses. Most Coca-Cola beverages are bottled and distributed locally. It's besides comparatively recession-proof fixed the debased terms for refreshing escapism.
The communicative gets amended if you zoom successful a bit, a gangly bid for a institution that's been astir for 135 years. I pointed retired that gross has declined successful 7 of the past 12 years, but it has really risen successful the past 4 years. Two of those 4 years treated investors to uncommon double-digit top-line jumps.
The beverage banal reports its first-quarter results connected Tuesday morning. The bulls person momentum. Coca-Cola has a knack for exceeding expectations. It has posted humble single-digit percent beats done 2024. Can it support the affirmative surprises going into 2025 and beyond?
Q1 2024 | $0.70 | $0.72 | 3% |
Q2 2024 | $0.81 | $0.84 | 4% |
Q3 2024 | $0.75 | $0.77 | 3% |
Q4 2024 | $0.52 | $0.55 | 6% |
Data source: Yahoo! Finance. EPS = net per stock (adjusted).
Now let's zoom retired again. Despite the U.S. inclination distant from colas and adjacent fare sodas, Coca-Cola has built up a portfolio of astir 200 brands covering carbonated sodas, hydration, coffee, tea, juice, dairy, and, much recently, alcoholic offerings done low-risk partnerships. It boosted its dividend 2 months ago, thing it has present done for a confidence-inspiring 63 consecutive years. Despite much than six decades of yearly increases, its payout ratio remains nether 70%. In short, the quarterly distributions should proceed to determination higher.