Has Coca-Cola lost some of its fizz? Among the 30 stocks in the Dow Jones industrial average, it ranks near the bottom over the last year — up 6 percent compared with the 21 percent climb of the Dow.
Investors will gain insight when the company reports second-quarter results Tuesday. They will be watching to see how sales are holding up in various regions around the world. Coca-Cola's revenue growth in countries such as India has been far stronger than in developed nations such as the United States, where the company is facing criticism that its sugary drinks contribute to the nation's obesity epidemic.
North America nevertheless remains a critical market, and Coca-Cola is relying on brands such as Powerade and Vitaminwater for growth.
Bonnie Herzog, a financial analyst at Well Fargo Securities, maintains an "Outperform" rating on Coca-Cola. She believes in the health of the company going forward, and in a recent report encouraged investors to take advantage of the stock's weakness as an opportunity to build long-term positions.Associated Press