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Weiss Ratings highlights pricing-power stocks for a weaker dollar
The screen includes Coca-Cola, which reported second-quarter net revenue up 7% to $13.38 billion and expanded its comparable operating margin to 35.6% as it raised guidance.
Weiss Ratings argues that traditional “safety” positioning is less effective when the dollar weakens and inflation pressures consumer economics, and it points investors toward companies with structural pricing power. According to MarketBeat Ratings, Gavin Magor, director of research at Weiss Ratings, said the updated definition of safety should focus on business models where economics improve as costs rise, rather than being squeezed by inflation. The outlet said Weiss’ approach is designed to work through scenarios where a weaker currency changes the mechanics of defensiveness. Among the names highlighted is Coca-Cola, rated B+ by Weiss. The outlet cited Coca-Cola’s streak of dividend increases for 64 consecutive years, along with second-quarter performance including net revenue rising 7% to $13.38 billion, organic revenue growth of 6%, global unit case volume climbing 5%, and comparable operating margin expanding to 35.6%. It also noted that management lifted full-year guidance in late July. The screen also includes Mastercard, rated B- by Weiss. MarketBeat Ratings said Mastercard’s pricing power comes from a transaction-based model where its take is a percentage of the transaction amount, so revenue moves with higher spending without requiring repricing decisions.