PepsiCo and Coca-Cola are both undervalued, and I foresee an appreciable upside in 2025. Click here to read why both PEP and KO stocks are a Buy.

Companies that make shareholders wealthy must be efficient and profitable, and Coca-Cola meets both criteria. In a given year, the company converts roughly 20% to 30% of its sales into free cash flow and earns a solid 15% return on invested capital. In other words, good things happen when Coca-Cola invests in the business.

Pivoting to Coca-Cola, its top line is projected to increase by 1% in FY24 and is expected to expand another 4% in FY25 to $48.02 billion. Coca-Cola is now expected to post 6% EPS growth in FY24 with annual earnings projected to increase another 3% in FY25 to $2.96 per share.

Fintel reports that on January 8, 2025, TD Cowen upgraded their outlook for Coca-Cola (NYSE:KO) from Hold to Buy. Analyst Price Forecast Suggests 23.79% Upside As of December 22, 2024, the average one-year price target for Coca-Cola is $75.