We recently published a list of The Best and Worst Dow Stocks for the Next 12 Months. In this article, we are going to take a look at where The Coca-Cola Company (NYSE:KO) stands against other best and worst dow stocks for the next 12 months.
The Dow Jones Industrial Average (DJIA), or the Dow, is a price-weighted index that has long been seen as a barometer of the health of the U.S. economy. After touching all-time highs in late November 2024, the index has corrected nearly 7% in 2025 (as of April 23) and is down 12% from its highs. Rightly so, the correction reflects several unfavourable developments, including economic uncertainties and geopolitical tensions weighing on economic growth. The market is expected to remain volatile as the trade and other aspects of the US administration’s policy agenda play out.
Amid this volatility, based on the potential for share price appreciation in the next 12 months, we have created a selection of the best and worst Dow stocks from the 30 Dow constituent stocks.
Has This Been the Most Volatile Period for The Dow?
If we analyse its trackable history from 1899, the Dow has fallen 7% or more on a single day twenty times. Of those, only seven occurred after the year 2000, and the 5.5% decline on April 5, 2025, doesn’t count as one of those seven, or not even in the historical top twenty. So, technically, this correction was not as severe as earlier. From corrections post 2000, the sharp declines when Covid-19 struck were the most noticeable – Dow fell 7.8%, 10%, and 12% on 9, 12, and 16th March, respectively, and saw further significant declines in that year.
That said, the current period remains one of the most confusing times for market participants, even for the larger players in the equity market, who remain uncertain about their estimates for the broader markets, such as the Dow.
Is Volatility Expected to Continue?
In a recent interview, Lauren Goodwin, Chief Market Strategist at New York Life Investments, emphasized that the fundamental picture remains cloudy and investors are still looking for clarity in macroeconomic fundamentals. Despite some positive economic data recently, policy uncertainty is limiting visibility. As more data is released, she believes markets are entering a sustained period of elevated volatility across equities and fixed income.
What is The Best Way Forward for Investors?
In these testing times, investors should examine fundamentals more critically, preferring Dow stocks with earnings resilience, clear competitive advantages, and exposure to long-term, secular growth themes. On April 28, Stephanie Link, Hightower Advisors’ chief investment strategist, shared her positive outlook on the stock market in an interview on CNBC. With major tech companies, consumer, and financial companies set to announce results, she believes that if corporate earnings remain strong, the recent market rebound could continue. Since early April, the market has recovered significantly, and she attributed the rally to better-than-expected profit margins and steady corporate performance. Although the prominent tech names aren’t cheap in terms of valuation, she views the recent declines as long-term buying opportunities.
While markets may remain volatile in the coming months, the best opportunities in the Dow over the next 12 months should come from stocks with strong pricing power and earnings momentum. Investors should stick to stocks with strong brands, recurring revenue models, and competitive moats, which enable them to navigate macro uncertainty. Since the Dow comprises large-cap companies across various industries, these stocks might perform better during sell-offs.
Our Methodology
To identify the best and worst Dow stocks, we began with the 30 constituent stocks of the DJIA Index. We then ranked these stocks in ascending order based on the consensus 1-year median potential upside. Additionally, we also include data on hedge funds holding stakes in these stocks, utilizing Insider Monkey’s Q4 2024 hedge fund database to provide deeper insights into institutional investor trends.
It is important to note here that the terms “best” and “worst” refer strictly to the relative upside potential and do not imply any fundamental strengths or weaknesses of the underlying companies.
Note: All pricing data is as of market close on April 23.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt.
The Coca-Cola Company (NYSE:KO)
Upside Potential: 6.4%
Market Cap: $315 billion
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) is the first stock on our Best and Worst Dow Stocks list, and consequently, it is also the best-performing stock YTD in the DJIA, as of the close of April 23. It is a global beverage company with a portfolio of over 200 brands, including Coca-Cola, Sprite, Fanta, and Minute Maid. The company has a strong distribution network spanning over 200 countries, with which it generates consistent revenue from its diverse range of carbonated soft drinks, juices, and bottled water. It is consistently ranked among the most valuable brands worldwide.
The Coca-Cola Company (NYSE:KO) continues to benefit from its focus on product innovation and marketing campaigns, which have bolstered its volume growth in its beverage portfolio, robust organic revenue growth, and margin expansion. This has helped the company maintain its market share lead. For FY 2024, organic revenue grew a solid 12% year-over-year, which was driven by 11% growth in price/mix and 2% growth in concentrate sales. Adjusted operating margin for the full year improved by 90 basis points to 30%, and adjusted free cash flow increased by over 10% to $10.8 billion.
Larger beverage companies have recently been discussed heavily regarding the impact of tariffs. The Wall Street Journal recently reported that The Coca-Cola Company (NYSE:KO) may have an edge over its competitor, PepsiCo Inc. (NASDAQ:PEP), as it manufactures most of its soda concentrate in U.S. territories, versus competitors’ manufacturing exposure to Ireland (which is now subject to higher tariffs).
In street activity, UBS analyst Peter Grom recently reiterated his Buy rating on KO and increased the price target on the shares to $84 from $78. Despite a weaker macro environment, the analyst sees the company as better positioned for the upcoming earnings season and has better fundamental visibility, supporting his optimistic view.
Overall, KO ranks 30th on our list of best and worst dow stocks for the next 12 months. While we acknowledge the potential of Dow stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
