Here's why Coca-Cola Amatil Ltd is the best blue-chip stock to buy right now

Coca-Cola Amatil Ltd (ASX:CCL) shares have plummeted more than 43% in the last 18 months.

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There is nothing worse than a profit warning. But then again, there is nothing better than a profit warning.

It really depends on the way you look at it.

Day traders would tell you about the speed at which a stock's price can fall following such news. A profit warning can throw the market into a state of panic which can see a company's share price plummet in an instant.

On the other hand, value investors would highlight the opportunities that one can bring. While such an experience is painful for those holding the shares at the time, it can be great news for investors with cash waiting to be put to work.

Case in point

While most of Australia's blue chip stocks have received worldwide attention in recent years thanks to their solid yields and 'defensive' natures, there is one stock in particular which has been excluded from the celebrations.

Following a series of profit warnings, Coca-Cola Amatil Ltd (ASX: CCL) has actually declined by more than 43% since peaking at $15.43 in March 2013 with the stock now trading hands for just $8.71.

And the fall has been justifiable, too. After a strong year of earnings in 2012, the company's profits have been smashed as a result of a strong Aussie dollar, inflationary pressures in Indonesia, a pricing war with Schweppes and pressure from the supermarket giants, namely Woolworths Limited (ASX: WOW) and Coles.

In its most recent half-year report, the beverage manufacturer announced a 15.6% decline in net profit compared to the previous year and stated that its full-year profit would be "materially below" FY13.

So, why is this such a good opportunity?

To quote legendary investor Warren Buffett, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

I'll begin by restating that this is not a stock for day traders or other investors hoping to make a quick buck. As can be determined by looking at its recent share performance, investors are still cool on the stock and conscious of the headwinds facing the business. There really is no way of determining just how far the stock could fall.

However, this company has the rights to manufacture and distribute some of the world's most popular brands. It has a dedicated management team who are focused on improving productivity and heavily reducing costs (possibly up to $100 million annually). It has also recognised the need for greater spending on marketing and product development to help strengthen the brand over the coming years.

Indeed, it has also just released a new 250ml can designed to allow consumers to enjoy the world-famous product at a more appealing price which I believe will help reinvigorate the brand in Australia.

The BEST stock to buy right now

Although the near-term outlook remains cloudy, I am extremely confident in Coca-Cola Amatil's future and think now is an excellent time to stock up on shares.

Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd.

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