We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coca-Cola closed below its 200-day SMA at $67.43, signaling bearish technical sentiment.
KO's Q2 showed volume declines across regions, pressured by inflation and economic softness.
Despite near-term headwinds, Coca-Cola's pricing power and brand strength support long-term growth.
Shares of The Coca-Cola Company (KO - Free Report) have lost momentum in recent months, pushing it below industry thresholds and portraying a bearish sentiment from a technical standpoint. As a result, the KO stock slipped below its 200-day simple moving average (SMA) yesterday. Notably, the stock closed at $67.43 on Sept. 8, 2025, moving below the 200-day SMA of $67.73.
A drop below the 200-day SMA typically signals weakness, suggesting a potential shift from long-term bullish to bearish sentiment. It highlights fading investor confidence and slower buying interest, especially after months of underperformance.
Additionally, the soft drinks behemoth sloped below its 50-day SMA on Aug. 25, 2025, and continues to trade below the mark since then, indicating a short-term downward trend.
SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach also provides a clearer perspective on a stock's long-term direction.
KO Stock Trades Below 50 & 200-Day SMAs
Image Source: Zacks Investment Research
Coca-Cola has shown a lackluster performance, with its shares losing 6.8% in the past three months compared with the Zacks Beverages – Soft Drinks industry’s decline of 4.6%. The KO stock has also underperformed the broader Zacks Consumer Staples sector’s decline of 2.4% and the S&P 500's growth of 8.4% in the same period.
KO’s performance is notably weaker than that of its competitors, PepsiCo Inc. (PEP - Free Report) and The Vita Coco Company (COCO - Free Report) , which have rallied 7.5% and 15.4%, respectively, in the past three months. Additionally, the KO stock has underperformed Monster Beverage Corporation’s (MNST - Free Report) decline of 0.1% in the same period.
Coca-Cola’s 3-Month Price Performance
Image Source: Zacks Investment Research
At its current price of $67.43, the KO stock trades 11.2% above its 52-week low mark of $60.62 and 9.3% below its 52-week high mark of $74.38.
The Rationale Behind KO’s dismal performance
The recent price action follows Coca-Cola’s soft top-line performance in second-quarter 2025, marked by notable volume pressure in key markets, reflecting evolving consumer behavior and economic challenges. Developed markets like North America and Europe saw declines in volume, particularly in low-income segments, as consumers remained value-conscious amid inflationary pressures.
In North America, unit volume declined 1%, impacted by softer away-from-home consumption and retail price sensitivity. Europe also saw a volume contraction in the mid-single digits amid economic softness and reduced consumer frequency. In Latin America, unit volumes fell 2%, pressured by competitive intensity and reduced affordability in key markets like Mexico and Argentina. In the Asia Pacific, unit volume fell 3% primarily due to softness in China and Japan, markets where recovery has been slower than anticipated. Additionally, the Bottling Investments segment posted a 5% decline in unit volume, dragging the overall performance.
These widespread volume challenges signal waning consumer momentum, particularly among lower-income groups. While Coca-Cola continues to rely on price/mix gains to support revenues, the persistence of volume softness raises concerns about sustained demand, making recovery efforts in lagging regions even more critical. Additionally, currency headwinds, higher taxes and rising interest costs continue to be concerning.
Unfavorable currency hurt second-quarter revenues by 3%, operating income by 6% and EPS by 5%. Based on the current rates and including the impacts of hedged positions, the company expects currency headwinds to impact 2025 revenues by 1-2%. Additionally, acquisitions, divestitures and structural changes are expected to have a 1% negative impact on revenues in 2025. Comparable EPS growth is expected to include headwinds of 5% from currency, and a 1% impact of acquisitions, divestitures and structural changes. The company expects most of the currency headwinds to result from currency devaluation due to intense inflation.
Do Fundamentals Suggest a Comeback?
Coca-Cola’s strong business fundamentals, resilient demand and strategic execution continue to position the company for long-term growth. Premium offerings and category expansion in areas like ready-to-drink beverages and protein-based shakes have helped broaden its portfolio appeal, while targeted marketing has reinforced brand strength globally. The asset-light franchise model continues to enhance operational efficiency and protect margins, even amid cost pressures.
A key driver has been Coca-Cola’s pricing power, enabling it to offset inflationary impacts without significantly eroding demand. Growth in emerging markets, coupled with stable performance in developed regions, reflects the company’s ability to adapt to local consumer trends while maintaining consistent brand positioning. Additionally, digital initiatives and partnerships with bottling partners have improved supply-chain agility, supporting on-time delivery and inventory management.
Estimate Revision Trend for KO
The Zacks Consensus Estimate for Coca-Cola’s 2025 and 2026 EPS were unchanged in the last 30 days. For 2025, the Zacks Consensus Estimate for KO’s revenues and EPS implies 3.2% and 3.5% year-over-year growth, respectively. The consensus mark for 2026 revenues and earnings suggests 5.6% and 8.3% year-over-year growth, respectively.
Image Source: Zacks Investment Research
Coca-Cola’s Valuation
KO’s current forward 12-month price-to-earnings (P/E) multiple of 21.44X is significantly higher than the Zacks Beverages – Soft Drinks industry average of 17.48X, making the stock appear relatively expensive. However, the company’s P/E multiple reflects a significant discount to the S&P 500’s multiple of 22.88X.
Image Source: Zacks Investment Research
At 21.44X P/E, Coca-Cola trades at a significant discount to most of its industry peers. The company’s peers, such as Monster Beverage and Vita Coco, are delivering solid growth and trade at premium multiples, while PepsiCo trades at a discount to KO. Monster Beverage and Vita Coco have forward 12-month P/E ratios of 30.46X and 29.37X, respectively, significantly higher than KO. However, PepsiCo trades at a P/E multiple of 16.97X.
The KO stock’s reasonable valuation, relative to the market at large and below many of its peers, indicates that the stock has further upside potential, backed by strong fundamentals. Coca-Cola’s ability to overcome the near-term headwinds and deliver improved volumes is crucial for regaining momentum.
What Should Investors Do? Buy KO or Wait & Watch?
Coca-Cola’s recent slip below both 50-day and 200-day SMAs underscores the near-term weakness in its technical setup, with persistent volume declines and macroeconomic headwinds weighing on investor sentiment. The stock’s underperformance relative to peers reflects these challenges, and short-term volatility cannot be ruled out.
However, Coca-Cola’s strong fundamentals, pricing power, resilient portfolio and reasonable valuation compared with the S&P 500 and several peers reinforce its long-term appeal. For existing investors, the best course may be to hold the stock and remain patient for long-term gains as the company works through current challenges. New investors may wait for signs of recovery in KO’s volume trends and stabilization of near-term pressures before stepping in.
Image: Bigstock
Coca-Cola Stock Slides Below 200-Day SMA: Buy, Sell or Stay Invested?
Key Takeaways
Shares of The Coca-Cola Company (KO - Free Report) have lost momentum in recent months, pushing it below industry thresholds and portraying a bearish sentiment from a technical standpoint. As a result, the KO stock slipped below its 200-day simple moving average (SMA) yesterday. Notably, the stock closed at $67.43 on Sept. 8, 2025, moving below the 200-day SMA of $67.73.
A drop below the 200-day SMA typically signals weakness, suggesting a potential shift from long-term bullish to bearish sentiment. It highlights fading investor confidence and slower buying interest, especially after months of underperformance.
Additionally, the soft drinks behemoth sloped below its 50-day SMA on Aug. 25, 2025, and continues to trade below the mark since then, indicating a short-term downward trend.
SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach also provides a clearer perspective on a stock's long-term direction.
KO Stock Trades Below 50 & 200-Day SMAs
Image Source: Zacks Investment Research
Coca-Cola has shown a lackluster performance, with its shares losing 6.8% in the past three months compared with the Zacks Beverages – Soft Drinks industry’s decline of 4.6%. The KO stock has also underperformed the broader Zacks Consumer Staples sector’s decline of 2.4% and the S&P 500's growth of 8.4% in the same period.
KO’s performance is notably weaker than that of its competitors, PepsiCo Inc. (PEP - Free Report) and The Vita Coco Company (COCO - Free Report) , which have rallied 7.5% and 15.4%, respectively, in the past three months. Additionally, the KO stock has underperformed Monster Beverage Corporation’s (MNST - Free Report) decline of 0.1% in the same period.
Coca-Cola’s 3-Month Price Performance
Image Source: Zacks Investment Research
At its current price of $67.43, the KO stock trades 11.2% above its 52-week low mark of $60.62 and 9.3% below its 52-week high mark of $74.38.
The Rationale Behind KO’s dismal performance
The recent price action follows Coca-Cola’s soft top-line performance in second-quarter 2025, marked by notable volume pressure in key markets, reflecting evolving consumer behavior and economic challenges. Developed markets like North America and Europe saw declines in volume, particularly in low-income segments, as consumers remained value-conscious amid inflationary pressures.
In North America, unit volume declined 1%, impacted by softer away-from-home consumption and retail price sensitivity. Europe also saw a volume contraction in the mid-single digits amid economic softness and reduced consumer frequency. In Latin America, unit volumes fell 2%, pressured by competitive intensity and reduced affordability in key markets like Mexico and Argentina. In the Asia Pacific, unit volume fell 3% primarily due to softness in China and Japan, markets where recovery has been slower than anticipated. Additionally, the Bottling Investments segment posted a 5% decline in unit volume, dragging the overall performance.
These widespread volume challenges signal waning consumer momentum, particularly among lower-income groups. While Coca-Cola continues to rely on price/mix gains to support revenues, the persistence of volume softness raises concerns about sustained demand, making recovery efforts in lagging regions even more critical. Additionally, currency headwinds, higher taxes and rising interest costs continue to be concerning.
Unfavorable currency hurt second-quarter revenues by 3%, operating income by 6% and EPS by 5%. Based on the current rates and including the impacts of hedged positions, the company expects currency headwinds to impact 2025 revenues by 1-2%. Additionally, acquisitions, divestitures and structural changes are expected to have a 1% negative impact on revenues in 2025. Comparable EPS growth is expected to include headwinds of 5% from currency, and a 1% impact of acquisitions, divestitures and structural changes. The company expects most of the currency headwinds to result from currency devaluation due to intense inflation.
Do Fundamentals Suggest a Comeback?
Coca-Cola’s strong business fundamentals, resilient demand and strategic execution continue to position the company for long-term growth. Premium offerings and category expansion in areas like ready-to-drink beverages and protein-based shakes have helped broaden its portfolio appeal, while targeted marketing has reinforced brand strength globally. The asset-light franchise model continues to enhance operational efficiency and protect margins, even amid cost pressures.
A key driver has been Coca-Cola’s pricing power, enabling it to offset inflationary impacts without significantly eroding demand. Growth in emerging markets, coupled with stable performance in developed regions, reflects the company’s ability to adapt to local consumer trends while maintaining consistent brand positioning. Additionally, digital initiatives and partnerships with bottling partners have improved supply-chain agility, supporting on-time delivery and inventory management.
Estimate Revision Trend for KO
The Zacks Consensus Estimate for Coca-Cola’s 2025 and 2026 EPS were unchanged in the last 30 days. For 2025, the Zacks Consensus Estimate for KO’s revenues and EPS implies 3.2% and 3.5% year-over-year growth, respectively. The consensus mark for 2026 revenues and earnings suggests 5.6% and 8.3% year-over-year growth, respectively.
Image Source: Zacks Investment Research
Coca-Cola’s Valuation
KO’s current forward 12-month price-to-earnings (P/E) multiple of 21.44X is significantly higher than the Zacks Beverages – Soft Drinks industry average of 17.48X, making the stock appear relatively expensive. However, the company’s P/E multiple reflects a significant discount to the S&P 500’s multiple of 22.88X.
Image Source: Zacks Investment Research
At 21.44X P/E, Coca-Cola trades at a significant discount to most of its industry peers. The company’s peers, such as Monster Beverage and Vita Coco, are delivering solid growth and trade at premium multiples, while PepsiCo trades at a discount to KO. Monster Beverage and Vita Coco have forward 12-month P/E ratios of 30.46X and 29.37X, respectively, significantly higher than KO. However, PepsiCo trades at a P/E multiple of 16.97X.
The KO stock’s reasonable valuation, relative to the market at large and below many of its peers, indicates that the stock has further upside potential, backed by strong fundamentals. Coca-Cola’s ability to overcome the near-term headwinds and deliver improved volumes is crucial for regaining momentum.
What Should Investors Do? Buy KO or Wait & Watch?
Coca-Cola’s recent slip below both 50-day and 200-day SMAs underscores the near-term weakness in its technical setup, with persistent volume declines and macroeconomic headwinds weighing on investor sentiment. The stock’s underperformance relative to peers reflects these challenges, and short-term volatility cannot be ruled out.
However, Coca-Cola’s strong fundamentals, pricing power, resilient portfolio and reasonable valuation compared with the S&P 500 and several peers reinforce its long-term appeal. For existing investors, the best course may be to hold the stock and remain patient for long-term gains as the company works through current challenges. New investors may wait for signs of recovery in KO’s volume trends and stabilization of near-term pressures before stepping in.
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.