Should I buy Coca-Cola stock in 2025?

What is Coca-Cola?

What is the price of Coca-Cola stock?

The price of Coca-Cola stock is rising this week. As of now, the current share price sits at $71.49, reflecting a daily increase of $0.34 (+0.48%), though the weekly change shows a slight dip of -0.49%. Coca-Cola’s market capitalisation stands at $307.71 billion, with an average three-month trading volume of 17.88 million shares. The company maintains a P/E ratio of 28.71, paired with a steady 2.85% dividend yield and a stock beta of 0.47, indicating limited volatility. With its defensive business model and resilient global footprint, Coca-Cola remains a compelling option for South African investors seeking stable growth and reliable income.

Our full analysis on the Coca-Cola stock

After a thorough review of Coca-Cola’s latest quarterly results, historical performance across the past three years, and the aggregated output of our proprietary algorithms—drawing from a blend of financial metrics, technical signals, and comprehensive peer analysis—it emerges that Coca-Cola stands at a particularly intriguing juncture. The combination of robust defensive characteristics, accelerating momentum, and strategic innovation calls for a closer look. So, why might Coca-Cola stock once again become a strategic entry point into the global consumer staples sector in 2025?

Recent Performance and Market Context

Coca-Cola’s share price has demonstrated remarkable resilience and steady upside, currently trading at $71.49 as of 30 May 2025. Over the last 12 months, the stock has returned +15.87%, significantly outperforming the S&P 500’s comparatively modest +0.52% rise over the same period. The 6-month trajectory (+11.56%) underscores accelerating demand, while its 52-week range ($60.62 – $74.38) confirms a breakout from last year’s consolidation phase.

Recent quarters have been highlighted by sustained growth in emerging markets and an ability to navigate macroeconomic headwinds with agility. Strategic milestones—such as record-breaking penetration in India during the Maha Kumbh Mela (180 million servings) and robust volume growth in China during the Lunar New Year—underscore Coca-Cola’s global reach and appeal. In a defensive sector that is often sought out during times of volatility, Coca-Cola’s performance is especially notable amid heightened global uncertainties and shifting consumer behaviour.

Bolstering the bullish view, the broader consumer staples universe has benefitted from improving macro tailwinds—moderating inflation, stabilising input costs, and resilient demand across both developed and developing markets. For South African investors seeking diversified US dollar exposure and inflation-hedged income, the combination of strong fundamentals and consistent dividend growth is compelling.

Technical Analysis

The technical landscape for Coca-Cola shares currently points to an emerging bullish structure.

• RSI (14 days): At 49.00, the Relative Strength Index remains neutral, affording sufficient headroom for further upside before overbought conditions are signalled.
• MACD (12,26,9): Slightly positive at 0.07, the MACD suggests a pause or mild consolidation, typically preceding renewed upward momentum once triggered.
• Moving Averages: The 20-day moving average ($71.28) is only marginally below the current share price, while the 50-day ($71.12), 100-day ($68.42), and 200-day ($67.35) moving averages provide a solid stepwise structure of technical supports.

The key support at $68.70 should provide a robust floor against broader market volatility, while the initial resistance at $73.00—if cleared—may enable further gains toward consensus and algorithmic targets (notably, the $77.67 analyst consensus and $92.94 computed fair value).

Importantly, while the overall technical sentiment is “neutral with a slight bullish bias,” the confluence of healthy support levels, upward-moving long-term averages, and sector leadership suggest that Coca-Cola may be entering a new intermediate-term bullish cycle—offering a favourably timed entry for investors seeking both capital preservation and potential upside.

Fundamental Analysis

Coca-Cola’s fundamental story is one of robust, consistent growth rooted in a globally diversified engine. Q1 2025 results highlight:

• Revenue: $11.1 billion for the quarter (-2% reported due to forex, but +6% organic growth), demonstrating an ability to deliver sales expansion despite currency headwinds.
• Volume: +2% in unit case growth, affirming broad-based consumer demand.
• Operating Income and Margin: Outstanding year-on-year operating income growth (+71%, or +10% on a comparable basis) and a significant margin expansion to 32.9% from 18.9%—reflecting operating leverage and effective cost management.
• EPS Beat: Q1 EPS reached $0.77, outpacing consensus by 10% and marking +5% year-over-year growth.

Valuation remains attractive relative to sector peers:

• P/E Ratio: At 28.71x, Coca-Cola trades at a justified, premium multiple, reflecting its best-in-class profitability and defensive cash flow profile.
• PEG Ratio: Organic earnings growth (2–3% forecast 2025), combined with a seasoned management team, suggests sustainable, value-accretive expansion.
• Dividend Yield: At 2.85%, underpinned by decades of uninterrupted payouts and regular increases, the yield is highly appealing for income-seeking investors.

Structurally, Coca-Cola boasts the world’s most recognisable brand and a diversified portfolio spanning more than 200 countries, with approximately two-thirds of revenue generated outside the US. The company has successfully expanded into water, sports drinks, coffee, and tea, reducing reliance on carbonated soft drinks. Partnerships with leading bottlers and innovative launches (e.g., Simply Pop, the first US prebiotic soda) fuel continued resilience.

Volume and Liquidity

With a market capitalisation of $307.71 billion and an average 3-month daily trading volume near 18 million shares, Coca-Cola enjoys exceptional liquidity and institutional sponsorship. This robust float—4.27 billion shares actively traded—ensures dynamic price discovery, narrow bid-ask spreads, and ease of execution for both retail and institutional participants globally.

Such sustained volume is a strong indicator of underlying market confidence and facilitates technical and valuation-driven re-ratings. The significant holding by Berkshire Hathaway reinforces faith in the long-term business model and underlines confidence from one of the world’s most respected investors.

Catalysts and Positive Outlook

Multiple organic and inorganic catalysts are positioned to drive the next leg of growth:

• Emerging Market Expansion: With 80% of the world’s population residing in developing markets, Coca-Cola’s outsized presence (notably in India and China) points to long-term volume and revenue upside.
• Innovation: Beyond traditional offerings, the launch of functional beverages (prebiotics) and collaborative alcohol-based products (Absolut Vodka & Sprite with Pernod Ricard) unlocks attractive new profit streams.
• Digital and ESG Initiatives: Heavy investment in tech–focused start-ups and a transition toward sustainable packaging (reverse vending and circular economy initiatives) position Coca-Cola at the forefront of responsible capitalism—a factor increasingly prized by both institutional and individual investors, including those in South Africa.
• Guidance: For 2025, management projects 5–6% organic revenue growth, 2–3% comparable EPS growth, and free cash flow approaching $9.5 billion (excluding non-core fairlife payment), all of which underpin the stock’s upside potential.

Critically, these catalysts are reinforced by a proven “all-weather” strategy, demonstrated resilience against FX and trade headwinds, and best-in-class operational agility.

Investment Strategies

Coca-Cola’s risk/reward profile is compelling across time horizons:

• Short-Term:
• Attractive technical entry points can be observed near the $68.70–$71.00 support band, with the 20/50-day moving averages tightly clustered, suggesting low-volatility accumulation potential for tactical investors ahead of the ex-dividend date (13 June 2025) or Q2 reporting.
• Momentum-based traders may look to initiate positions on a confirmed break above $73.00, targeting the $77.67 consensus and $92.94 algorithmic levels.
• Medium-Term:
• Upcoming product rollouts (Simply Pop, spirits) and ongoing penetration of key emerging markets provide visible earnings catalysts for H2 2025 and into 2026.
• Investors seeking stable income streams and moderate capital gains may allocate on dips, leveraging dividend reinvestment and compounding.
• Long-Term:
• The combination of dominant global market share, unparalleled brand strength, and a culture of reinvention make Coca-Cola a core holding for diversified defensive and growth portfolios alike.
• Strategic buyers may view periods of general market weakness or headline-related volatility as opportunities to accumulate at a favourable risk-reward skew.

Is It the Right Time to Buy Coca-Cola?

Bringing together the financial, technical, and strategic strengths, Coca-Cola stands out as a high-quality, defensive growth stock that remains uniquely positioned in today’s market climate. Its proven ability to generate consistent cash flow, drive innovation in both core and adjacent categories, and navigate volatile macroeconomic environments continues to delight analysts and long-term shareholders alike.

Recent outperformance versus market benchmarks, an attractive dividend policy, and renewed top-line and profit momentum strongly argue for renewed investor interest. As the company approaches a dynamic inflection point—driven by innovation, emerging market scale, and digital transformation—the fundamentals justify considering Coca-Cola as an excellent opportunity for portfolio diversification and stable wealth accumulation.

With multiple catalysts on the horizon and a robust safety net of structural advantages, Coca-Cola may well be entering a promising new bullish phase. For South African investors looking for reliable USD exposure, resilient cashflows, and an iconic brand with global reach, KO deserves to be high on the watchlist as 2025 unfolds.

In summary, Coca-Cola’s blend of durability, growth, and shareholder rewards provides every reason to view the current entry point as one that may offer robust returns and dependable income for years to come—making it a stock that clearly merits serious consideration in any well-structured, globally diversified portfolio.

How to buy Coca-Cola stock in South Africa?

Buying Coca-Cola shares online is a simple and secure process, especially when using a regulated broker in South Africa. Most platforms allow you to invest in Coca-Cola (KO) either through direct spot buying or by trading Contracts for Difference (CFDs). Spot buying means you actually own the shares, while CFDs let you speculate on the price movement without owning the underlying asset. Each approach has its pros and cons depending on your investment strategy. For newcomers and seasoned investors alike, understanding the differences is vital — see our broker comparison further down the page to choose the best fit for your needs.

Spot Buying

A cash (or spot) purchase means buying Coca-Cola shares directly on the stock market through your broker. You become a shareholder, are entitled to dividends, and benefit if the share price appreciates. Fees for spot buying typically include a fixed commission per order, often ranging from R100 to R200 per trade (approx. $5–$10), sometimes with a small platform fee depending on your chosen broker.

Example

If Coca-Cola shares trade at $71.49 per share, and you invest the equivalent of $1,000 (about R18,500 at an exchange rate of R18.50/$), you can buy around 13 shares (excluding small currency differences), allowing for a typical brokerage fee of $5.
✔️ Gain scenario:
If the Coca-Cola share price rises by 10%, your shares are now worth $1,100.
Result: That’s a $100 gross gain, or +10% on your initial investment.

Trading via CFDs

CFD trading lets you speculate on Coca-Cola’s share price movement without owning the underlying shares. You can take long or short positions and apply leverage, which multiplies your market exposure. Instead of a fixed commission, CFDs usually incur a spread (the difference between buy and sell price) and an overnight financing cost if you hold positions longer than a day.

Example

With a $1,000 stake and 5x leverage, you can take a position worth $5,000 on Coca-Cola shares.
✔️ Gain scenario:
If the Coca-Cola share price rises by 8%, your position earns 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 margin (excluding fees).

Final Advice

Before investing, it’s essential to compare brokers’ fees, available markets (including US stocks), and regulatory conditions — choose the broker that matches your investment goals and risk profile. Whether you prefer long-term shareholding for steady growth and dividends, or leveraged trading for short-term strategies, your approach will depend on your objectives and experience. You’ll find a detailed broker comparison tool further down the page to help you decide with confidence.

Our 7 tips for buying Coca-Cola stock

The latest news about Coca-Cola

Coca-Cola’s Q1 2025 results surpassed analyst expectations, with robust earnings and strong operational performance. In the last seven days, Coca-Cola reported first-quarter results that beat Wall Street estimates by delivering earnings per share (EPS) of $0.77, outpacing consensus by over 10%. Revenues reached $11.1 billion, with organic growth registering at +6%, and operating income saw an impressive 71% surge (10% on a comparable basis). These figures were driven by a 2% increase in volumes, demonstrating the ability to maintain momentum across key markets. For investors in South Africa (ZA), this consistent operational excellence underscores Coca-Cola’s resilience, particularly relevant for local funds exposed to the global consumer staples sector and for those seeking stocks with predictable performance in volatile times.

The company’s global outlook remains optimistic, supported by clear forward guidance and a focus on emerging markets. Coca-Cola reaffirmed its 2025 guidance: it anticipates 5-6% organic revenue growth, 2-3% comparable EPS growth, and free cash flow of approximately $9.5 billion (excluding fairlife payment). A key growth driver highlighted is the heavy weighting of the company’s exposure to emerging markets, which account for 80% of the world’s population. This is particularly significant for ZA-based analysts, as South Africa is part of the same global economic ecosystem that fuels Coca-Cola’s expansion and market share, keeping the local bottling and distribution ecosystem robust.

Coca-Cola’s operations in South Africa and the broader region demonstrate ongoing stability and strategic local engagement. The company maintains a well-established presence in ZA through Coca-Cola Beverages South Africa (CCBSA), the continent’s largest bottler. Recent communication from CCBSA confirmed uninterrupted supply chains and sustained investment in regional production facilities, a positive signal amid occasional logistics challenges elsewhere. This regional stability supports local employment, tax revenues, and supply contracts—factors that mitigate sector volatility and justify continued investor confidence in the stock from a South African perspective.

The share price has outperformed the S&P 500 over the past year, reflecting defensive quality and income reliability. Over the past twelve months, Coca-Cola’s share price appreciated by 15.87%, a notable outperformance relative to the S&P 500’s 0.52%. At $71.49 per share and with a dividend yield of 2.85%, the stock offers both capital appreciation and stable passive income. For South African investors—who may be hedging against rand volatility or seeking established US dividend plays—Coca-Cola remains an attractive option for portfolio diversification and sustained yield, a positioning substantiated by its low beta and strong brand legacy.

Recent product innovations and strategic partnerships reinforce Coca-Cola’s growth and adaptability in changing markets. The launch of new offerings—such as Simply Pop, the company’s first US prebiotic soda, and the Absolut Vodka & Sprite partnership with Pernod Ricard—demonstrates ongoing product innovation. This is supported by investments in sustainable packaging and reverse recycling machines, aligning with rising environmental, social, and governance (ESG) standards increasingly relevant in South African institutional investment mandates. The ability to evolve its portfolio and form high-impact partnerships illustrates Coca-Cola’s commitment to maintaining relevance and market leadership globally and within ZA-linked consumer markets.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.