Most stocks follow the overall market. When stocks are rising, even poorly-managed companies can go along for a rally. And when stocks are falling, even great companies can get sold off as well.
Right now, only a handful of companies are performing well in today’s markets. Some of those are commodity plays, others are companies capable of growing no matter what the overall economy does.
One such company is the Coca-Cola Company (KO). The beverage giant has some issues with supply chain issues, but overall, the business of selling beverages is a consistent one.
The company just posted strong earnings, and expects 8-10 percent growth for the year ahead, a sizeable return for a company that’s already large and globally permeated.
Action to take: Shares are hardly cheap at 26 times forward earnings, but it’s one of the world’s leading brands, and sports a 25 percent profit margin as proof. It’s also a classic dividend growth play, with a current yield of 2.7 percent to start after recently raising the dividend yield.
Trades might want to play the current uptrend with the September $70 calls. Last going for about $1.50, traders can likely leverage a further rally into a mid-double-digit return in the months ahead. Shares aren’t too volatile, so traders shouldn’t expect a huge move.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.