Coca-Cola (KO) is expected to remain resilient despite ongoing market challenges linked to U.S. tariffs. The beverage giant has been identified as a defensive stock, capable of maintaining strong sales growth even in uncertain economic conditions. While the company faces limited exposure to tariffs, risks include imported fruit juice and aluminum. However, Coca-Cola’s management has expressed confidence that potential aluminum inflation will not significantly impact its outlook.
The analysts also noted a “moderating consumption environment” in the U.S., which has led to slightly reduced earnings and sales growth estimates for the company. This is expected to be partially offset by a weakening dollar. Coca-Cola shares closed down less than 1% amid a broader market sell-off, but have gained 16% since the start of the year.