Is it Worth Investing in The Coca-Cola Company (KO)?

view original post

Rowan Street Capital, an investment management company, released its 2022 yearly update. A copy of the same can be downloaded here. The fund declined -61% in 2022, due to the decline of growth stocks in the year as the fund’s portfolio is dominated by growth companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Rowan Street Capital highlighted stocks like The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Headquartered in Atlanta, Georgia, The Coca-Cola Company (NYSE:KO) is a beverage company. On January 10, 2023, The Coca-Cola Company (NYSE:KO) stock closed at $62.13 per share. One-month return of The Coca-Cola Company (NYSE:KO) was -2.91%, and its shares gained 2.63% of their value over the last 52 weeks. The Coca-Cola Company (NYSE:KO) has a market capitalization of $268.682 billion.

Rowan Street Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”

The Coca-Cola Company (NYSE:KO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held The Coca-Cola Company (NYSE:KO) at the end of the third quarter, which was 60 in the previous quarter.

We discussed The Coca-Cola Company (NYSE:KO) in another article and shared best stocks to buy before the 2023 recession. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.