2 Dow Stocks to Buy and Watch This Week

NYSE: KO | Coca-Cola Company News, Ratings, and Charts

KO – Despite the consecutive rate hikes, the U.S. economy remains resilient amid robust consumer spending and a tight labor market. So, given the Dow Jones’ steady start to 2023, we think quality Dow stocks Coca-Cola (KO) and McDonald’s (MCD) could be great buys now. Keep reading…

Despite the Federal Reserve’s interest rate hikes, the U.S. economy seems resilient enough, with solid job growth and stable consumer spending. Goldman Sachs sees improved odds of the U.S. economy avoiding a deep recession this year.

Moreover, Chris Williamson, a chief business economist at S&P Global Market Intelligence. Believes, “Despite headwinds from higher interest rates and the cost-of-living squeeze, the business mood has brightened amid signs that inflation has peaked and recession risks have faded.”

In addition, the Dow Jones Industrial Average gained nearly 3% in January 2023 and is expected to maintain momentum this year. Also, according to the Economy Forecast Agency, the Dow Jones Industrial Average Index could trade at 33,634 points by March 2023.

Therefore, we think quality Dow stocks The Coca-Cola Company (KO - Get Rating) and McDonald’s Corporation (MCD - Get Rating) could make solid buys this week.

The Coca-Cola Company (KO - Get Rating)

KO manufactures, markets, and sells various non-alcoholic beverages worldwide. The company provides sparkling soft drinks, flavored and enhanced water, sports drinks, juice, dairy, plant-based beverages, tea and coffee, and energy drinks.

KO’s trailing-12-month gross profit and EBITDA margins of 58.14% and 31.03% are 84.4% and 194% higher than the industry averages of 31.53% and 10.55%.

KO has paid dividends for 60 consecutive years. Its dividend payouts have increased at 3.5% CAGR for the past five years. Its current dividend yield is 3.08%, and its four-year average yield is 3.06%.

KO’s net operating revenues came in at $43 billion for the year ended December 31, 2022, up 11.3% year-over-year. Its gross profit increased 7.3% year-over-year to $25 billion. Moreover, its operating income came in at $10.91 billion, representing a 5.8% year-over-year rise.

Analysts expect KO’s revenue to increase 4.5% year-over-year to $44.98 billion in the current fiscal year, 2023. Its EPS is expected to increase by 6.1% per annum for the next five years. It surpassed EPS estimates in all four trailing quarters. The stock has lost marginally over the past month to close the last trading session at $59.80.

KO’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our POWR Rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

KO has a B grade for Stability, Sentiment, and Quality. KO is ranked #15 out of 37 stocks in the B-rated Beverages industry. Click here for additional KO ratings (Growth, Value, and Momentum).

McDonald’s Corporation (MCD - Get Rating)

MCD operates and franchises McDonald’s restaurants in the United States and internationally.

MCD’s trailing-12-month gross profit and EBITDA margins of 56.97% and 52.69% are 61.3% and 375.1% higher than the industry averages of 35.33% and 11.09%.

MCD has paid dividends for 21 consecutive years. Its dividend payouts have increased at 8.1% CAGR for the past five years. Its current dividend yield is 2.26%, while its four-year average yield is also 2.26%.

MCD’s revenues from franchised restaurants came in at $3.65 billion for the quarter that ended December 31, 2022, up 7.5% year-over-year. Its net income increased 16% year-over-year to $1.90 billion, while its EPS increased 18.8% year-over-year to $2.59.

Street expects MCD’s revenue to increase 5% year-over-year to $24.35 billion in the current fiscal year 2023. Its EPS is expected to rise 7.3% per annum for the next five years. It surpassed EPS estimates in all four trailing quarters. Over the past year, the stock has gained 7.2% to close the last trading session at $268.68.

MCD’s overall B rating equates to a Buy in our proprietary rating system. It has an A grade for Quality and a B for Stability and Sentiment. MCD is ranked #7 out of 45 stocks in the B-rated Restaurants industry. Get additional MCD ratings for Growth, Value, and Momentum here.

Consider This Before Placing Your Next Trade…

We are still in the midst of a bear market.

Yes, some special stocks may go up. But most will tumble as the bear market claws ever lower.

That is why you need to discover the brand new “Stock Trading Plan for 2023” created by 40-year investment veteran Steve Reitmeister. There he explains:

  • Why it’s still a bear market
  • How low stocks will go
  • 9 simple trades to profit on the way down
  • Bonus: 2 trades with 100%+ upside when the bull market returns

You owe it to yourself to watch this timely presentation before placing your next trade.

Stock Trading Plan for 2023 > 

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


KO shares were trading at $60.12 per share on Wednesday afternoon, up $0.32 (+0.54%). Year-to-date, KO has declined -5.49%, versus a 4.39% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
KOGet RatingGet RatingGet Rating
MCDGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Stock Market Alert: History Repeating Itself?

The last time we played around with tariffs was back in 2018 when we started a trade war with China. To say the least that was very negative for stocks as the S&P 500 (SPY) tanked the second half of the year. We need to learn from those history lessons to chart our course for investing in 2025. Read on for more...

Read More Stories

More Coca-Cola Company (KO) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All KO News