CNBC’s Jim Cramer explained why he thinks Coca-Cola is a solid and attractive stock following its latest quarterly earnings report.
“Coca-Cola has set up a clinic by showing you how an experienced management team can overcome just about any challenge you can throw at them. This is long term strength. It’s a great stock to put aside,” the Mad Money host said. .
Coca-Cola reported better-than-expected quarterly earnings and revenue on Monday.
Coke shares rose 1.06% to hit a new 52-week high earlier in the day.
“The block is a reminder that sometimes you just want to own best-in-class companies in unassailable positions… It’s not that Coca-Cola doesn’t have problems – they deal with the same problems as everyone else – they are able to safely walk through the thickets,” Kramer said.
He attributed Coke’s success to the popular Topo Chico Hard Seltzer, collaborations with DoorDash, and other efforts to gain market share and get products to customers.
Coke said it sees higher costs for key materials such as high fructose corn syrup and aluminium. But Cramer noted that “the good news is that the bank-producing companies are finally ramping up capacity after a long period of containment, largely due to Covid.”
“If we’re going to get out of this inflationary spiral, we either need a lot of companies to add capacity or the Fed has to crush the economy. When it comes to Coca-Cola, it is obvious that its suppliers are increasing production. really matters,” he said.