For Now, the Power Gauge Prefers the 'Other Coca-Cola'

Legendary investor Warren Buffett loves Coca-Cola (KO)... Buffett's Berkshire Hathaway (BRK-B) first bought Coca-Cola shares in the late 1980s. And more than three decades later, his holding company still owns about 9% of Coca-Cola. [Chaikin PowerFeed]( For Now, the Power Gauge Prefers the 'Other Coca-Cola' By Marc Gerstein, director of research, Chaikin Analytics Legendary investor Warren Buffett loves Coca-Cola (KO)... Buffett's Berkshire Hathaway (BRK-B) first bought Coca-Cola shares in the late 1980s. And more than three decades later, his holding company still owns about 9% of Coca-Cola. It's not just Buffett, either... Coca-Cola is owned by 384 exchange-traded funds ("ETFs"). And in 61 ETFs, it makes up at least 2% of the portfolio. Consumers love Coca-Cola, too. According to Brand Finance, it's the top-ranked soft-drink brand, with a value of $35.4 billion. PepsiCo (PEP) is second at roughly $20.7 billion. The Power Gauge wants to love Coca-Cola's stock as well. In fact, it has fluctuated between "bullish" and "neutral+" for the better part of this year. The flip-flop ratings are happening because of the Federal Reserve's continued interest-rate shift. It's worrying the market. And it keeps pushing the stock below its long-term trend. But there's good news for Coca-Cola fans... As I'll explain in today's essay, the Power Gauge is more convinced about the "other Coca-Cola" right now. And as a result, this investment could be worth considering... Recommended Links: [NEW: Severe Stock Warning for August 2022]( Just months ago, Marc Chaikin issued a dire warning for U.S. stocks that quickly came true. Today, his systems just detected the next massive shift headed straight for U.S. stocks. And like before, you have a very narrow window of time to prepare. In fact, history shows it could arrive by the end of August. [Click here for full details](. [Have You Prepared for This Retirement Shock?]( Dr. David Eifrig recently stepped forward with the biggest announcement of his career. It all centers around a wave of money flooding Wall Street, even as stocks crash. He says this misunderstood corner of the market could ravage the wealth of those who aren't prepared. [Get the Retirement Shock story here](. In short, the Power Gauge ranks Coca-Cola FEMSA SAB de CV (KOF) as "very bullish." I can hear you now... Coca-Cola what de what? To keep things simple for the rest of this essay, I'll just call it the "other Coca-Cola." I'm sure Buffett has heard of this company. But I don't know how many other folks have. Only six ETFs own shares today. And it accounts for 0.75% or less in these portfolios. But remember, for us as investors... [obscurity can be a great asset](. Now, I don't see "10-bagger" potential with the other Coca-Cola. But nevertheless, it offers appealing prospects relative to the main Coca-Cola... First, as I've alluded to, the two companies are related. Coca-Cola owns roughly 28% of the other Coca-Cola's equity. (Latin American beverage retailer FEMSA owns another 47%.) And importantly, the other Coca-Cola is a very valuable business partner... In the soft-drink industry, the "name" (Coca-Cola, in this case) mainly makes syrups and concentrates. And the product bought and appreciated by consumers often comes from independent bottlers. These companies buy the syrup from the parent company. They produce, package, and distribute the final products. The other Coca-Cola is the largest bottler-distributor for the parent company. That includes Coca-Cola's large portfolio of other soft-drink brands (such as Sprite, Fanta, and Fresca) and its noncarbonated beverages (like Dasani and Powerade). The other Coca-Cola operates in key regions of Latin America. It's active in highly populated areas of Mexico, Central America, Colombia, Brazil, Uruguay, and Argentina. Business is presently brisk throughout all of its territories. That's reflected in its "bullish" ranking for earnings trend. (Meanwhile, Coca-Cola is ranked "neutral" in this factor.) The other Coca-Cola also ranks higher than the main Coca-Cola in the estimate trend factor of the Experts category. (It's "very bullish," while Coca-Cola is "neutral.") So far, it looks like the other Coca-Cola is modestly better. And valuation is where the company really pulls ahead right now... The other Coca-Cola ranks "bullish" in both the price-to-sales and projected price-to-earnings ratios. Meanwhile, the main Coca-Cola is "bearish" and "neutral," respectively, for those two factors. More often than not, the main Coca-Cola is a strong performer. Investing legends like Buffett have made piles of money from the stock over the past few decades. But right now, the Power Gauge slightly favors the other Coca-Cola. Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -3.07% 1 24 5 S&P 500 -3.38% 104 272 121 Nasdaq -4.10% 17 56 27 Small Caps -3.35% 448 956 443 Bonds +0.75% — According to the Chaikin Power Bar, Small Cap stocks are somewhat more Bullish than Large Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] EA +3.57% [rating] MOH +3.36% [rating] TTWO +1.59% [rating] CF +0.81% [rating] COP +0.04% Losers [rating] MMM -9.54% [rating] NVDA -9.23% [rating] HPQ -8.94% [rating] ALGN -7.52% [rating] MPWR -7.35% * * * * Earnings Report Reporting Today Rating Before Open After Close HEI AZO, CTLT No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * Sector Tracker Sector movement over the last 5 days Energy +4.27% Materials -1.26% Utilities -2.56% Staples -3.20% Industrials -3.36% Financial -3.60% Real Estate -3.80% Health Care -4.24% Communication -4.39% Discretionary -4.69% Information Technology -5.56% * * * * Industry Focus Insurance Services 12 36 4 Over the past 6 months, the Insurance subsector (KIE) has outperformed the S&P 500 by +4.70%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21 subsectors. Top Stocks [rating] UNM Unum Group [rating] RGA Reinsurance Group of [rating] AFL Aflac Incorporated * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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