The share price of Coca-Cola (KO) has rallied over the past few months, benefiting from the company’s broad portfolio of products and dominant market position. However, can the stock continue to advance despite the resurgence of COVID-19 cases in several parts of the world? Let’s discuss.One of the world’s largest nonalcoholic beverage companies, the Coca-Cola Company (NYSE:KO) in Atlanta, Ga., is not devoid of its share of controversies to which its stock reacts. For example, the stock dipped on June 16 after professional soccer player Cristiano Ronaldo removed two of KO’s soda bottles at a Euro 2020 press conference. The company’s CFO, John Murphy, said the incident has not led to any direct sales impact.
The stock’s price has rallied 4.2% over the past month and 12.8% over the past six months to close yesterday’s trading session at $56.73. Amid a resurgence of COVID-19 cases in many parts of the world, KO’s CFO said last month that the company would rely on its pandemic-tested strategy of focusing on bigger brands and doubling down on its supply chain to combat a potential impact from the spread of the COVID-19 Delta variant. Furthermore, the dividend aristocrat is expected to pay a $0.42 quarterly dividend on October 1, 2021. So, KO’s near-term prospects look promising.
Here’s what we think could influence KO’s performance in the near term: