It's Championship Sunday! Lots of commercials are coming on tonight during the two games (go 49ers!) and there are many different companies that will advertise their products in the coming weeks. Although I'm not intrigued by many commercials, I am interested in some of the companies' stocks. One company I hope to see advertising is Coca-Cola (KO), primarily because I am interested in purchasing a blue chip stock soon to diversify my portfolio. This soft drink giant is notorious for its great effiency year after year. With increasing dividends for the past four decades, this company always has stellar performances. It consistently achieves better results than its rival Pepsi (PEP), especially because of its strong overseas markets in developing countries. The real question is: can we trust countries like KO to outperform the market?
Yes. With an expectionally low P/E ratio of 12.5, now seems like the best time to invest in this mega-business. The company has also maintained a strong 19.4% EPS growth rate over the past five years, a number significantly stronger than its other large- and mega-cap competitors. Growth is expected to continue to be strong for the next half decade in the low double-digits, and expansion in areas such as Asia will help to fuel this surge. But can we trust Coke simply because of its developed brand name?
That answer is also yes. Rated the top global brand name by Interbrand in 2011, Coca-Cola is a model for all other companies out there, beating well-known IBM (IBM) and Microsoft (MSFT). Essentially, you can't go wrong with an everyday product, another great reason to invest in companies just like this, including Procter & Gamble (PG) and Google (GOOG). If Warren Buffett has invested large sums of money in it, so can we, right? Not necessarily; you should only invest in companies and industries that you know well, but it is a very useful guideline that provides shareholders with optimism. Overall, Coca-Cola is a great company to invest in for a mix of success, efficiency, and moderate growth.
Do you believe that brand name stocks are good investments, or is the growth too slow to keep up with the market? Leave your input below and enjoy the rest of the weekend!
Yes. With an expectionally low P/E ratio of 12.5, now seems like the best time to invest in this mega-business. The company has also maintained a strong 19.4% EPS growth rate over the past five years, a number significantly stronger than its other large- and mega-cap competitors. Growth is expected to continue to be strong for the next half decade in the low double-digits, and expansion in areas such as Asia will help to fuel this surge. But can we trust Coke simply because of its developed brand name?
That answer is also yes. Rated the top global brand name by Interbrand in 2011, Coca-Cola is a model for all other companies out there, beating well-known IBM (IBM) and Microsoft (MSFT). Essentially, you can't go wrong with an everyday product, another great reason to invest in companies just like this, including Procter & Gamble (PG) and Google (GOOG). If Warren Buffett has invested large sums of money in it, so can we, right? Not necessarily; you should only invest in companies and industries that you know well, but it is a very useful guideline that provides shareholders with optimism. Overall, Coca-Cola is a great company to invest in for a mix of success, efficiency, and moderate growth.
Do you believe that brand name stocks are good investments, or is the growth too slow to keep up with the market? Leave your input below and enjoy the rest of the weekend!
