Wait — what’s going on here? You probably didn’t expect to see Coca-Cola Consolidated (NASDAQ:COKE) listed on the Nasdaq exchange. As we delve into COKE stock, there will be a number of surprises and, perhaps, a prime investment opportunity.
While Coca-Cola Consolidated is indeed a Nasdaq-listed company, it is not a typical technology business like one would probably expect to find on that exchange. Also, the company isn’t the world-famous soda maker that you’re undoubtedly familiar with.
Is the market trying to trick you, then? Not at all — there are perfectly valid reasons to consider COKE stock and there is definitely a soda-market connection here.
So, feel free to crack open a refreshing drink as we learn more about a century-old business that is unfamiliar to most investors, but is also an undeniable niche-industry leader.
COKE Stock at a Glance
There have been good times and bad times. Through thick and thin, however, Coca-Cola Consolidated’s loyal investors have enjoyed excellent returns.
Believe it or not, COKE stock traded for around $65 a decade ago. There were speed bumps along the way, but the stock eventually reached a peak of $638 in January of this year.
Along the way, Coca-Cola Consolidated has paid out dividend distributions. Currently, the company pays a forward annual dividend yield of 0.22%. Granted, this probably won’t make you fabulously wealthy overnight, but consider it the icing on the cake.
If you like to buy the dips in long-term uptrends, then check this out. COKE stock recently pulled back to the $430s. There are no guarantees, but it could be just a matter of time before the stock revisits the $600s.
Furthermore, the stock has strong support from 2021 at the $400 level. Value-focused investors should consider the favorable risk-to-reward profile and add Coca-Cola Consolidated to their watch lists.
What Is Coca-Cola Consolidated?
Okay, it is time to let the genie out of the bottle. Coca-Cola Consolidated isn’t the same as Coca-Cola (NYSE:KO), but there is a connection between the two companies.
As InvestorPlace contributor Shrey Dua explained, Coca-Cola Consolidated is an independent bottling company. According to the article, it “produces roughly 12% of what Coca-Cola brings in as revenue.”
Moreover, Coca-Cola Consolidated is the largest Coca-Cola bottler in the U.S. The company has been around for over 119 years.
When the stock market is turbulent, this is the type of business that sensible investors seek out. When a consumer-goods company like Coca-Cola Consolidated has existed for over a century, there is a sense of security and confidence.
As of Dec. 31, 2021, Coca-Cola Consolidated employed approximately 16,000 workers. It is a huge company and it seems to have done well during the recovery from the Covid-19 pandemic.
In 2021, “as the [Covid-19] pandemic’s impact on economic activity abated, consumer demand increased for products sold for immediate consumption compared to 2020,” the company observed.
A Tremendous Year
Speaking of 2021, let’s see how Coca-Cola Consolidated fared during that year and in its fourth quarter.
Chairman and Chief Executive Officer (CEO) J. Frank Harrison III, summed it up nicely, saying, “2021 was a tremendous year for our Company as we achieved record revenue, income from operations and operating cash flow.”
First, let’s look at Coca-Cola Consolidated’s year-over-year performance during 2021’s fourth quarter. As it turned out, the company posted a 9.7% net sales increase to $1.4 billion, as well as a 6.7% gross profit increase to $492.8 million.
For full-year 2021, Coca-Cola Consolidated reported $5.56 billion in net sales, up 11.1% year-over-year; $1.95 billion in gross profit, up 10.5%; along with a huge 40.1% increase in income from operations, which totaled $439.2 million for the year.
The Takeaway on COKE Stock
Judging by the recently reported fiscal data, Coca-Cola Consolidated’s CEO had every right to call his company’s performance “tremendous.”
What is also tremendous is the dip-buying opportunity with COKE stock. The risk-to-reward scenario certainly seems to favor a long position.
It is true that you won’t exactly be investing in the famous Coca-Cola soda company if you buy shares of Coca-Cola Consolidated. Still, you would have a stake in a reliable and reputable business with outstanding financial results.
Coca-Cola Consolidated currently scores a “B” grade in my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.