Coca-Cola: Expensive Ahead Of Earnings, Relative Weakness On The Chart


  • Staples stocks trade at more than 20 times forward non-GAAP earnings after a strong 2022.
  • Coca-Cola sells at a valuation premium to both its sector and the S&P 500.
  • Despite a strong EPS beat rate history, I see longer-term struggles for this expensive blue-chip stock.
Moscow, Russia, May 8, 2019. Coca-Cola advertising on the roof of a building in the city center

Georgiy Datsenko

The Consumer Staples sector trades at quite a premium these days. Following a year of flights to quality in 2022, the sector sports a forward 12-month operating P/E ratio of above 20, third to Consumer Discretionary and Information Technology, according to the weekly John

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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