Coca-Cola’s brand and global reach keep it steady, especially with strong sales in international markets. Click here to find out why I'm neutral on KO stock.

Companies that make shareholders wealthy must be efficient and profitable, and Coca-Cola meets both criteria. In a given year, the company converts roughly 20% to 30% of its sales into free cash flow and earns a solid 15% return on invested capital. In other words, good things happen when Coca-Cola invests in the business.

Warren Buffett is probably the most famous investor alive today, drawing followers who want to replicate his success. But, oddly enough, his investing portfolio is replete with what the market would label "boring" stocks,

Shares of Coca-Cola Co. KO slid 1.52% to $60.81 Monday, on what proved to be an all-around mixed trading session for the stock market, with the S&P 500 Index SPX rising 0.55% to 5,975.38 and the Dow Jones Industrial Average DJIA falling 0.

However, if you pull the lens further back, PepsiCo's drop from its three-year high is around 22%, while Coca-Cola's is around 14%. But Coke enjoyed a rally from late 2023 that lasted into 2024, while PepsiCo didn't. All in, investors appear to have been a little more negative about PepsiCo overall.

PepsiCo and Coca-Cola are both undervalued, and I foresee an appreciable upside in 2025. Click here to read why both PEP and KO stocks are a Buy.