CNBC’s Jim Cramer explained why he believes Coca-Cola is a sustainable investable stock following the company’s most recent earnings report.
“Coca-Cola has built a clinic that will show you how an experienced management team can meet almost any challenge you can throw at them. This is enduring strength. It’s a great stock to ditch,” said the Mad Money host.
Coca-Cola on Monday reported better-than-expected quarterly earnings and earnings.
Coke’s shares rose 1.06% to hit a fresh 52-week high earlier in the day.
“The quarter is a reminder that sometimes you just want to own the best companies in the breed in unassailable positions. … It’s not that Coca-Cola doesn’t have problems — they’re dealing with the same problems as everyone else — it’s that they were able to safely navigate through the thicket,” Cramer said.
He attributed Coke’s success to the popular Topo Chico Hard Seltzer, its collaboration with DoorDash, and other efforts to gain market share and get products to consumers.
Coke said it sees 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 a long period of holding back, mainly because of Covid.”
“If we’re to get out of this spiral of inflation, we either have to see many companies expand capacity or the Federal Reserve has to crush the economy. When it comes to cola, it’s obvious that its suppliers boosting their production is really important,” he said.