UBS Picks Coca-Cola as Top Defensive Stock Amid Market Volatility

UBS analysts have identified Coca-Cola (KO) as a defensive stock that could perform well in a shaky market. The bank's top pick in the beverage, household and personal-care group is based on its predictable earnings and dividend yield.

Coca-Cola has reported strong second-quarter results, with revenue up 7% from last year to $13.4 billion. Organic revenue increased 6%, global unit-case volume rose 5%, and comparable earnings per share climbed 11% to $0.97.

The company has also raised its 2026 outlook, expecting organic revenue growth of about 5% and comparable EPS growth of 9% to 10%. UBS believes that Coca-Cola's defensive characteristics make it an attractive investment option during a turbulent market.