Is The Coca-Cola Company (KO) the Best Dow Stock?

Yahoo

09-05-2025

We recently published a list of . In this article, we are going to take a look at where The The Coca-Cola Company (NYSE:KO) stands against other Dow stocks.
The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.
It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.
We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.
In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.
We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt.Short Interest as of Apr 30, 2025: 0.89%
The Coca-Cola Company (NYSE:KO) operates as a beverage company. It engages in the manufacturing and sale of different nonalcoholic beverages. The company was in the spotlight as different analysts reacted favorably to its recently released earnings.
BNP Paribas analyst Kevin Grundy highlighted that the firm has an industry-leading portfolio, improved EPS delivery, and market share momentum, which are the main drivers of its bullish thesis. Wells Fargo analyst Chris Carey believes that the Q1 results should soothe investors' nerves and boost confidence because of the solid margins, top-line growth fueled by volumes, and early confirmation of reiterated 2025 guidance. Moreover, Morgan Stanley analyst Dara Mohsenian believes the strong results confirm that the company is well-positioned for growth among its peers.
The firm has also updated its 2025 guidance. It expects organic revenue to grow by 5% to 6%, along with the comparable currency-neutral EPS growth of 7% to 9%. However, for the full year, The Coca-Cola Company (NYSE:KO) anticipates currency fluctuations to affect revenue by 2% to 3% and EPS by 5% to 6%. The company plans to prioritize local branding campaigns and focus on affordability to meet consumer needs.
Overall, KO ranks 14th on our list of best and worst Dow stocks. While we acknowledge the potential of KO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.