Coca-Cola is the worst performing Dow stock over the last year, but one top technician says that it's poised for an epic comeback.
Shares of the beverage giant have fizzled over the last 12 months, falling more than 7 percent as a growing number of consumers have ditched sugary drinks for a more health-conscious lifestyle. However, an improving technical backdrop combined with a hefty dividend leads Carter Worth of Cornerstone Macro to believe Coca-Cola could soon breakout.
On CNBC's "Options Action" Friday, Worth explained that the chart has "broken above the downtrend line, [and] ultimately [we're going to] get back to the high. That's a 10 percent move for Coke." In addition to the broken downtrend, Worth explained that with a dividend of more than 3 percent, Coke is more attractive than some of its peers.
"[The Consumer Staples sector] has started to come back to life and [is] actually outperforming the market." The sector is up nearly 5 percent in 2017 while the is up just 4 percent. "I like it a lot. I think it's catching up with a group that's starting to outperform the market. Get long Coke."
Coca-Cola shares were trading at the $42 range during Monday's session.
