From Nasdaq: 2024-05-01 18:21:49

The global artificial intelligence (AI) market is projected to grow at a CAGR of 28.5% to reach $826.7 billion by year-end, with CEOs prioritizing generative AI. Coca-Cola (KO) has entered the AI space, partnering with tech leaders to future-proof its business and enhance competitiveness.

Coca-Cola’s diverse revenue streams and asset-light model have helped maintain financial strength. Despite a 3.3% drop in its stock over 52 weeks, KO remains steady with a YTD gain. Valued at a forward P/E of 21.9x, KO offers a 3.14% annual dividend yield.

With Q1 earnings exceeding expectations, Coke reported $0.72 adjusted net income per share on $11.3 billion revenue. 2024 projections show a 4.5% rise in earnings, supported by an 8%-9% organic revenue growth forecast and a partnership with Microsoft (MSFT) to leverage generative AI capabilities.

Nearsighted growth in RTD alcoholic beverages, diversified product range, and billion-dollar AI partnership with Microsoft fortify Coca-Cola’s position. Analysts hold a “strong buy” consensus, with a mean target price of $65.57, implying a potential upside of 6.4% from the current price, making KO a compelling choice for income and growth-seeking investors.



Read more at Nasdaq: 1 Dividend King to Buy for Passive Income and AI Upside