Coca Cola seems to have been a boring staple recently. However, that does not necessarily have to be a disadvantage. The globally operating beverage corporation announced solid results on Tuesday, underscoring its appeal to investors as a reliable performer.

In the fourth quarter, organic sales increased by 12% compared to the previous year - excluding the effects of mergers and currency fluctuations. Price increases accounted for a large part of this, but encouragingly, the underlying case volume rose by 2% compared to the previous year.

This suggests that consumers around the world are unimpressed by the company's price hikes. Product case volumes dropped by 1% in North America but were positive in all other regions. Coca-Cola shares edged up slightly on Tuesday, although the broader market fell sharply due to a higher-than-expected inflation rate in the US.

Last week, competitor PepsiCo reported less than flawless performance, leading to a 3.5% drop in share price. Organic revenues increased by 4.5% compared to the previous year, but the underlying volumes were negative, with a decline of 3% in "convenience foods" such as Frito-Lay and a 2% decline in beverages.

For the year 2024, Coca-Cola predicts an organic revenue growth of 6% to 7%, while Pepsi foresees an organic growth of at least 4%. "There was inflation and distractions and ups and downs, but in the end, the steady volume growth dominates," said Coca-Cola CEO James Quincey in a teleconference with analysts.

Before the market opened on Tuesday, Coca-Cola stock had fallen by 1.5% in the last 12 months, while Pepsi dropped by 4%. Compared to a 21.3% increase in the S&P 500, other names in the consumer goods sector have performed much worse, particularly large food manufacturers: Campbell Soup and General Mills both fell by about 18%, as consumers seem weary of price hikes on supermarket shelves.

Against this backdrop, Coca-Cola's flat performance doesn't seem so bad. According to a FactSet survey, with a price-to-earnings ratio of 21.1 times for the coming years, Coca-Cola is not exactly a bargain. But that is actually below the ten-year average of 22.3 times.

And Investors Still Need Some Hedges in Their Portfolios in Case Something Goes Awry in the Broader Market. Tuesday’s News on Inflation Is a Reminder That a Goldilocks Scenario for the US Economy Is Not Guaranteed: Should Inflation Prove Stubborn, Interest Rates Could Remain High Longer Than Investors Currently Anticipate.

And large technology stocks virtually reflect a perfectly unfolding situation in the development and commercialization of artificial intelligence. In theory, consumer goods stocks fit into this picture. But investors should stick to those that have proven their resilience. Coca-Cola is a classic for good reason.