Have you ever seen the show Mad Men?
It was one of the Gorilla’s FAVORITES a few years ago…
It followed a fictitious Madison Avenue ad agency in the 1960’s – with the main character being a charismatic enigma of a genius.
Sure, he was a womanizer – but it was a different time – and the style of the show was incredibly meticulous.
I say that – because in the finale (SPOILER ALERT) – the main character comes up with one of the most famous ad jingles in history…
“I’d like to teach the world to sing… in perfect harmony. I’d like to buy the world a coke – and keep it company.”
Remember it?
Well, I do…
It was catchy – and even ALL these years later – I can still recite (most of the song).
I bring that up because today we’re going to be talking about Coca-Cola (KO) – and why shareholders should be smiling.
Let’s get into this…
Well, as you can guess…
Coca-Cola just reported sparkling quarterly results.
Even though this year has been as terrible as a flat soda – Coca-Cola managed to pull through with some heavenly results.
It had to spend more on raw materials and shipping – but it didn’t let that get it down…
Instead, it raised its prices like it was adding something magical to its drink – and because Coke drinkers are loyal and RAVENOUS for their favorite soda – they didn’t bat an eye.
People guzzled Coca-Cola like it was their last drink on earth – especially at public venues like restaurants and events…
And even though the drink was 11% more expensive on average – people still bought it – resulting in a 3% increase in sales.
Now, Coca-Cola is a staple drink in many people’s fridges…
But there’s a bigger picture to this story.
Procter and Gamble just had lackluster results – despite beating expectations…
But Coca-Cola did something right to come out on top – and it’s not just because it’s a consumer staple.
One key ingredient to its success is its dominance in the carbonated drinks industry – as it’s really just PepsiCo (PEP) as its only competition…
Plus – Coca-Cola’s world-famous brand and dependable dividend have made it a favorite of the Oracle of Omaha himself – Warren Buffett.
Now, even though Coca-Cola is doing well – its stock has only risen 2% this year – which is like drinking a flat soda when you were expecting some fizz.
But… PepsiCo is in the same boat – which might have something to do with the sector’s trading valuation being about 25% higher than its historical average.
It’s definitely not a bargain – and safety-seeking investors have plenty of other options with lower risks and higher yields now that interest rates are higher.
But let’s dive deeper into this fizzy news, shall we?
Coca-Cola’s success in the face of adversity can be compared to a person who goes through a bad breakup – but comes out on top with a new, better partner.
Coca-Cola might have had to deal with more expensive raw materials and shipping – but it didn’t let that bring them down.
It raised its prices – and people still bought it!
Very rarely does something like that happens…
But that’s the leeway you get when you’re the biggest and most recognizable brand in the world.
The fact that Warren loves it is really just icing on the cake, isn’t it?
But…
Is it fit for GorillaTrades?
Well, that remains to be seen…
Remember – our stock recommendations are based off real numbers and hard data – not just the fact that people seem to love the product.
There are metrics that Coca-Cola’s stock must hit before it’s GorillaTrades-worthy.
That said…
If it DOES hit – you don’t want to be standing on the sidelines if it does.
That’s why I’m urging you to become a GorillaTrades member today…
That way when Coca-Cola or any other profit prospect hits the table – you’ll be among the very first to get on board.
Regardless of your answer – do yourself a favor and keep your eye on Coca-Cola…
You can smile while drinking some – but you’ll smile even more after making a profit.
Until next time…
“Love is such an objective thing. I mean, I can say I love my family, or I love my Diet Coke. So, I guess, in different ways, yeah, I do believe in love.” – Emilie de Ravin
