Is Coca-Cola Stock Outperforming the S&P 500?
The Coca-Cola Company (KO), headquartered in Atlanta, Georgia, is a global leader in the beverage industry, specializing in the production, marketing, and distribution of non-alcoholic drinks. With a market cap of $304.5 billion, Coca-Cola is renowned for its extensive portfolio of iconic brands, including Coca-Cola, Sprite, and Fanta, which cater to a diverse global audience.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” Coca-Cola firmly holds its place in this elite category. As consumer preferences evolve, Coca-Cola’s ability to innovate, whether through new product offerings, sustainable initiatives, or strategic marketing - ensures its continued relevance.
KO stock is trading 3.6% below its 52-week high of $73.53, achieved recently on Sept. 4. Shares of Coca-Cola have gained 10% over the past three months, outperforming the broader S&P 500 Index’s ($SPX) 2.3 % decline during the same time frame.
However, over the longer term, KO is up 13.8% on a YTD basis, and the stock has soared 17.5% over the past 52 weeks. By contrast, the SPX is down marginally in 2025 and has surged 15.4% over the past year.
To confirm the bullish price trend, KO has been trading above its 50-day and 200-day moving average since early February.
On Feb. 11, KO surged over 4% following its strong Q4 earnings results. The company’s revenue climbed 5.4% year over year to $11.54 billion, surpassing estimates by 7.8%. Adjusted EPS came in at $0.55, beating projections by 6.4%, while adjusted EBITDA reached $3.27 billion with a 28.3% margin, exceeding forecasts by 11.7%. Operating margin improved to 23.5% from 20.8% a year ago, and free cash flow margin jumped to 27.3% from 16.6%.
To emphasize the stock’s outperformance this year, Coca-Cola’s top rival, PepsiCo Inc (PEP), is underperforming – not just KO but the broader market. PEP stock declined 9.6% over the past 52 weeks and dipped marginally on a YTD basis.
Analysts hold a strongly optimistic view of the KO stock’s potential. The stock has a consensus rating of “Strong Buy” from 22 analysts covering it, and the mean price target of $76.05 is a premium of 7.3% to current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.