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● AI Equity Research · Consumer Defensive

Coca-Cola Company (The) (KO)

AI stock analysis · Beverages - Non-Alcoholic · Last analyzed Aug 19, 2026

Compass Score
3.0/5
Call
Hold
Price
$88.82
AI Target
$94.70 +6.6%
AI Analyst Summary

Coca-Cola's bull thesis rests on its unmatched global distribution network and exceptional pricing power, which drove 16.9% EPS growth YoY — an impressive result for a Consumer Defensive name facing currency headwinds and volume pressures in key emerging markets. A strong Buy consensus from 83% of covering analysts and a perfect 4-of-4 recent EPS beat rate reflect high confidence in management's execution. The primary risk is valuation: at a PEG of 4.23, the stock leaves little room for disappointment, and any deceleration in earnings growth could trigger multiple compression.

Catalysts
Fundamentals
Pe Trailing P/E 26.1x / Forward P/E 25.2x · 3.0/5
P/E of 26.1x is modestly above the Consumer Defensive sector median (~22x), reflecting KO's brand premium. Not egregiously expensive but offers limited valuation upside. Forward P/E of 25.2x suggests modest multiple compression ahead.
Peg PEG 4.23 · 1.0/5
PEG of 4.23 is well above the 3.0 threshold that signals a poor growth-to-valuation trade-off. At current earnings growth of ~17%, the market is pricing in significant brand and stability premium, leaving little margin of safety on a growth-adjusted basis.
Analyst Rating Buy consensus (1.8) · 4.0/5
Consensus of 1.8 on an inverted scale maps to a Buy. With 19 of 24 analysts rating the stock a Buy and only 1 Sell, sentiment is broadly constructive. The strong analyst breadth (23 total) adds confidence to the signal.
Earnings Trend EPS Growth +16.9% YoY · 4.0/5
16.9% YoY earnings growth is above average for a Consumer Defensive name and reflects strong pricing power and international volume recovery. Revenue growth of 6.7% provides underlying support. Growth is solid but not accelerating, stopping short of a 5.
Price Target Beat 4 of 4 quarters beat (last 4 reported) · 3.0/5
A perfect 4-of-4 EPS beat rate over the last 4 quarters is encouraging, but the scoring rubric requires 8 quarters of data to award a 4 or 5. With only 4 quarters available, a neutral score of 3 is applied per guidelines.
Management Consistent execution; strong pricing discipline · 4.0/5
A flawless recent EPS beat record, robust analyst confidence, and disciplined pricing strategy in a challenging macro environment all point to capable management. Capital allocation has been steady with reliable dividend growth. Scored 4 given limited multi-year beat history in the dataset.
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