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Highest Operating Margin in the Soft Drinks Industry Detected for Coca-Cola (KO, FIZZ, COKE)

Published on Mon, 12/31/2012 - 11:15
By Robert Cotter

Below are the three companies in the Soft Drinks industry with the highest operating margin. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.

Coca-Cola (NYSE:KO) is highest with an operating margin of 22.6%. The Coca-Cola Company manufactures, markets, and distributes soft drink concentrates and syrups. The Company also distributes and markets juice and juice-drink products. Coca-Cola distributes its products to retailers and wholesalers in the United States and internationally.

Potential upside of 18.3% exists for Coca-Cola, based on a current level of $35.84 and analysts' average consensus price target of $42.40. The stock should find initial resistance at its 50-day moving average (MA) of $37.13 and further resistance at its 200-day MA of $37.74.

Following is National Beverage (NASDAQ:FIZZ) with an operating margin of 11.1%.

Finishing up the top three is Coca-Cola Bottling Co Consolidated (NASDAQ:COKE), with an operating margin of 6.5%.

By Robert Cotter
rcotter@fnno.com