Is Coca-Cola Co Stock (KO) a Good Investment?

By AAII Staff
November 25, 2025
Featured Tickers:
KO

Learn more about whether The Coca-Cola Company is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (KO) grades on certain investment factors and determine whether it meets your investment needs.

Latest The Coca-Cola Company Stock News

As of November 24, 2025, The Coca-Cola Company had a $312.3 billion market capitalization, putting it in the 99th percentile of companies in the Beverages industry.

Currently, The Coca-Cola Company’s price-earnings ratio is 24.0. The Coca-Cola Company’s trailing 12-month revenue is $47.7 billion with a 27.3% profit margin. Year-over-year quarterly sales growth most recently was 5.1%. Analysts expect adjusted earnings to reach $2.988 per share for the current fiscal year. The Coca-Cola Company currently has a 2.8% dividend yield.



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Grading The Coca-Cola Company Stock

Before you choose to buy, sell or hold The Coca-Cola Company stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (KO) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at The Coca-Cola Company’s stock grades for value, growth and quality. Learn more about A+ Investor here!

The Coca-Cola Company Stock Growth Grade

Growth Grade:

Metric Metric Score KO Sector Median
Sales Growth 5yr Ann'l 100 4.8% 4.8%
Sales Increases YoY Last 5 yrs 80 4 of 5 3 of 5
Cash from Operations Ann'l Positive Last 5 yrs 100 5 of 5 5 of 5

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

The Coca-Cola Company has a Growth Score of 97, which is Very Strong.

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The Coca-Cola Company Stock Quality Grade

Quality Grade:

Metric Score KO Sector Median
Return on Assets (ROA) 91 12.3% 3.9%
Return on Invested Capital (ROIC) 95 107.4% 19.3%
Gross Income to Assets 69 27.7% 27.8%
Buyback Yield 70 0.2% (0.3%)
Change in Total Liabilities to Assets 81 (5.0%) 1.2%
Accruals to Assets 7 5.1% (4.5%)
Z Double Prime Bankruptcy Risk (Z) Score 75 7.53 5.89
F-Score 84 7 5

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

The Coca-Cola Company has a Quality Score of 93, which is Very Strong.

The Coca-Cola Company Stock Earnings Estimate Revisions Grade

Estimate Revisions Grade:

Metric Score KO Sector Median
Quarterly Surprise SUE Latest Qtr 80 4.4 1.5
Quarterly Surprise SUE Prior Qtr 68 2.5 1.9
EPS Est Current Year % Rev Last Month 36 0.0% 0.0%
EPS Est Current Year % Rev 3 Mos 46 0.3% (0.1%)

The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

The Coca-Cola Company has an Earnings Estimate Revisions Score of 58, which is Neutral.

Other The Coca-Cola Company Stock Grades

In addition to Growth, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Momentum.

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AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.

The Momentum Grade helps uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether The Coca-Cola Company’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy The Coca-Cola Company Stock?

Overall, The Coca-Cola Company stock has a Growth Grade of A, Quality Grade of A, Earnings Estimate Revisions Grade of C.

Whether or not you should buy The Coca-Cola Company stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how The Coca-Cola Company stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

The Coca-Cola Company (KO) Competitors

Companies similar to The Coca-Cola Company in the Beverages industry.

Company name Ticker Market Cap
Heineken N.V. HEINY $45.12Bil
Diageo plc DEO $50.85Bil
Monster Beverage Corporation MNST $72.13Bil
Anheuser-Busch InBev SA/NV BUD $113.55Bil
PepsiCo, Inc. PEP $200.08Bil

The Coca-Cola Company Stock: Bottom Line

You can use the information about how The Coca-Cola Company is graded to determine if you should invest in this stock. However, you should decide whether The Coca-Cola Company’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether The Coca-Cola Company is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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