Coca-Cola (NYSE:KO) is one of the best stocks to buy now for good returns.
Recently, Morgan Stanley touted Coca-Cola (NYSE:KO) as its top stock pick in the US beverage sector
The investment bank maintains an Overweight rating on the stock, impressed by strong long-term organic growth prospects on the back of positive short-term developments. Pixabay / Public Domain According to the investment bank, the company’s Fairlife sales growth in the US has accelerated over the last six weeks due to incremental capacity expansions. Additionally, the company continues to demonstrate strong pricing power compared to its consumer packaged goods peers.
Consequently, it boasts a greater competitive advantage than rivals PepsiCo and Keurig Dr. Pepper. While Coca-Cola trades at a 5% next 12-month price-to-earnings premium versus peers, Morgan Stanley sees greater short-term visibility given the ramp-up at Fairlife and favorable competitive dynamics.