5 Stocks Least Vulnerable to Recession

4. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 64

The Coca-Cola Company (NYSE:KO) is an investors’ go-to stock if they want to shelter from macroeconomic pressures, simply because of the company’s legacy operations, a business model that has passed the test of time, and an established position in the industry. As of July 20, The Coca-Cola Company (NYSE:KO) has gained 8.75% over the past twelve months and is offering a forward dividend yield of 2.81%, which the company supports with its free cash flow of $10.24 billion.

Over the past 3 months, 17 Wall Street analysts have given their 12-month price targets and ratings for The Coca-Cola Company (NYSE:KO). The stock has been given 13 Buy ratings and 4 Hold ratings, which brings its consensus rating to Strong Buy. The stock has a high price target of $76 and a low price target of $64. The stock’s average price target of around $70.5 implies a 14.59% upside from its closing price of $61.50 on July 20.

At the end of Q1 2022, 64 hedge funds were eager on The Coca-Cola Company (NYSE:KO) and disclosed stakes worth $29.17 billion in the company. This is compared to 70 positions in Q4 2021 with stakes worth $28.61 billion.

As of March 31, Berkshire Hathaway is the leading shareholder in The Coca-Cola Company (NYSE:KO) and owns 400 million shares of the company. The investment covers 6.82% of Warren Buffett’s 13F portfolio.

Here is what ClearBridge Investments had to say about The Coca-Cola Company (NYSE:KO) in its “Dividend Strategy” fourth-quarter 2021 investor letter:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”