Investopedia: On Track With Volumes And Margins, Coca-Cola Refreshes

As a value-oriented investor, once you relax and accept the fact that stocks like Coca-Cola (NYSE:KO) are almost never going to look cheap, evaluating them becomes quite a bit easier. With stocks like Coca-Cola, the reality is that investors view them as something almost like a hybrid of stock and bond, and so the valuation nearly always seems a bit stretched compared to other equities.

But as this quarter shows, Coca-Cola still has the ability to surprise to the upside. Decent volume growth helped to offset some price pressure and the company's progress on margin should reassure investors that management's long-term growth goals are attainable. So while these shares continue to look expensive by conventional valuation methodologies, and there does seem to be a general state of overvaluation in consumer-oriented stocks, the fundamental case for Coca-Cola remains pretty positive.

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