CNBC’s Jim Cramer explained why he believes Coca-Cola is an endurable, investable stock on the heels of its latest quarterly earnings report.
“Coca-Cola put on a clinic, showing you how a seasoned management team can overcome just about any challenge you might throw at them. That’s long-lasting strength. That’s a great stock to put away,” the “Mad Money” host said.
Coca-Cola reported better-than-expected quarterly earnings and revenue on Monday.
Shares of Coke rose 1.06%, notching a new 52-week high earlier in the day.
“The quarter’s a reminder that sometimes you just want to own the best of breed companies in unassailable positions. … It’s not that Coca-Cola’s got no problems — they’re dealing with the same issues as everyone else — it’s that they’ve been able to safely navigate their way through the thicket,” Cramer said.
He attributed Coke’s success to the popular Topo Chico Hard Seltzer, its DoorDash collaboration and other efforts to gain market share and get products to customers.
Coke said it is seeing higher costs for core supplies like high fructose corn syrup and aluminum. But Cramer noted “the good news is that the companies that make cans are finally adding capacity after holding back for a long time, mostly because of Covid.”
“If we’re going to get out of this inflationary spiral, we either need to see lots of companies adding capacity, or the Federal Reserve will have to crush the economy. When it comes to Coke, obviously its suppliers boosting their production is what really matters,” he said.