Should You Buy Coca-Cola Stock Before July 28?
It's that time of the year: earnings season. And investors are paying extra close attention to the companies that they own or that are on their watch lists.
Coca-Cola (NYSE: KO) is set to reveal financial results for its fiscal 2026 second quarter on July 28. Should you buy this beverage stock, which is up 18% this year, before then?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
When Coca-Cola reported its Q1 numbers in late April, for the period ended April 3, management laid out full-year guidance. At that time, it expected organic revenue growth of 4% to 5% and an adjusted earnings-per-share (EPS) gain of 8% to 9%. Should this outlook be upgraded, then investors will have a clear sense of how optimistic the leadership team is. On the other hand, a downgraded forecast indicates difficult times ahead.
Consensus analyst estimates call for sales to rise 4% year over year in the second quarter. EPS is projected to increase 7%. It's worth pointing out that Coca-Cola exceeded Wall Street's top- and bottom-line forecasts in Q1 of this year.
Coca-Cola is such a steady and predictable business, however, that investors shouldn't expect any surprises. This is still an extremely profitable enterprise. Coca-Cola has reported an average operating margin of 26.3% over the past five years. This allows the company to rake in huge amounts of free cash flow.
Therefore, it's unnecessary to make an investing decision ahead of the upcoming financial release. It's almost a virtual certainty that the fundamentals aren't going to change at all.
The better question to ponder is whether you want to own this business for the long term. At a price-to-earnings ratio of 26, shares aren't cheap. And based on the historical track record, Coca-Cola isn't going to outperform the market.
When companies report earnings, investors receive the most up-to-date information on their holdings. While this data is certainly important, as it can reinforce or challenge an investment thesis, it's always a great idea to maintain a long-term perspective. If you have a time horizon of five years or more, a single quarter's numbers are trivial in the big picture.
This is especially true for a business like Coca-Cola. Having been around for 140 years, this is arguably the most stable company on the face of the planet. It has staying power due to the minimal risk of obsolescence. Its brand has stood the test of time.
And most importantly, Coca-Cola continues to prioritize its dividend payout, which is key to the investment story. It has an incredible 64-year streak in place of hiking dividends. This makes the beverage stock a top choice among income investors.
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,272,280!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of July 23, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Should You Buy Coca-Cola Stock Before July 28? was originally published by The Motley Fool