For the first time in decades, Coca Cola Company New York Stock Exchange: K.W. It reported negative free cash flow (operating cash flow minus capital expenditures), with a net outflow of $1.4 billion. While this headline may have worried some investors, the underlying reason was not collapsing sales or brand strength; It was a strategic acquisition.
Although this is a common move among large-cap companies to facilitate growth, KO stock has fallen more than 6.4% since the release of its second-quarter earnings report in July 2025. For investors focused on raising capital, it may be time to look beyond legacy names.
While Coca-Cola relies on acquisitions to stay relevant, Centenary Holding Company Nasdaq: Syla Deliver organic growth, impressive profits, and increased analyst confidence – all without sacrificing momentum. The contrast between these two companies reflects a broader choice facing investors today: stability or growth – or a smart balance between the two.
Why isn’t Coca-Cola’s free cash flow a crisis?
Coca-Cola stock forecast today
$76.93
14.74% upHe buys
Based on 16 analyst ratings
| Current price | $67.05 |
|---|---|
| High expectations | $83.00 |
| Average expectations | $76.93 |
| Low expectations | $70.00 |
Details of Coca-Cola stock forecasts
Excluding the $6.1 billion cash outlay to acquire Fairlife, a premium dairy brand that Coca-Cola has partly owned since 2012, its free cash flow would be $3.9 billion — in line with historical levels.
As encouraging as this may seem, investors should note that Fairlife only accounts for 2 to 3 percent of Coca-Cola’s revenue. So, even if Fairlife manages to double its sales year over year, it will hardly move the needle relative to its new parent company. In other words, Coca-Cola will continue to be the slow but steady growth company it has been for some time. However, the Fairlife acquisition could help boost KO’s dividend and stock buyback programs in the future.
Coca-Cola still trades at a forward P/E of 22.5x. When compared to PepsiCo Inc. Nasdaq:Bib17.1x, this translates to a valuation premium of 31.5% driven by Coca-Cola’s unparalleled global footprint and consistency of cash generation. As Coca-Cola’s direct counterpart – and a staple of many of the same dividend-focused portfolios – PepsiCo provides a useful benchmark.
While some institutional investors, such as Canada Life Insurance Corporation and National Bank of Canada, have modestly reduced their holdings of government bonds (by 1.4% and 7%, respectively), overall sentiment remains stable. The consensus price target from Wall Street analysts is around $77, which implies a net upside of 16%. Even after a downward price movement, investors can still get a 3.09% annual return.
Celsius: Growth that Coca-Cola cannot provide
Celsius stock forecast today
$63.15
4.04% upModerate purchase
Based on 24 analyst ratings
| Current price | $60.70 |
|---|---|
| High expectations | $90.00 |
| Average expectations | $63.15 |
| Low expectations | $32.00 |
Details of Celsius stock forecasts
In contrast, Celsius is a pure growth play. CELH is trading more than 90% off its 52-week high and is up more than 26% over the past quarter. Celisus’s primary growth path is purely organic, while Coca-Cola’s organic growth has reached a kind of natural plateau for companies of this size.
In the energy drinks category, Celsius competes with more established players such as Monster Beverage Company Nasdaq: MNSTThat dominated the space for a long time. But Celsius is trading at a forward P/E of 65.9x, a 58% premium to Monster’s 41.5x. This indicates that investors recognize and appreciate Celsius’ faster growth, expanding margins, and increased brand momentum.
In its most recent quarterly report, Celsius reported earnings per share (EPS) of 47 cents, well above MarketBeat analysts’ estimates of 23 cents. This led to upgrades by analysts, such as Bonnie Herzog of Goldman Sachs and Eric Sirota of Morgan Stanley, who put… Target price is $72 and $70Respectively, both are well above the consensus of $62.40.
Growth or stability: choose based on what you need
Despite the decline in free cash flow, Coca-Cola remains a favorite stock for investors who prioritize stability, income and brand durability. Its fundamentals are sound, and its dividend remains a reliable source of long-term return for many investors.
But for those looking to add growth to their portfolio, Celsius offers something Coca-Cola simply cannot: significant upside potential. With strong earnings momentum, strong market expansion, and increasing analyst support, Celsius looks increasingly like a leader in the next generation of consumer brands.
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