Coca-Cola Is Up 35% This Year: Take Profits, or Hold On for the Ride?

Quick Read

• Coca-Cola (KO) has surged 35% in 2026, posting five straight earnings beats and raising its full-year EPS guidance to a range of 9 to 10%.

• PepsiCo (PEP) is down 3% and Monster Beverage (MNST) up 23% YTD, both well behind Coca-Cola’s company-specific outperformance.

• At 31x earnings, KO’s rich valuation faces a pivotal test on October 27, with IRS risk and weaker lower-income consumers as headwinds.

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A century-old beverage giant has become one of the more surprising stock-market winners of 2026, running ahead of faster-growing rivals. Coca-Cola (NYSE:KO) stock is down 0.6% to $92.83 in afternoon trading, a modest dip against a 35% gain year to date (YTD).

A surge this large from a mature consumer staple puts shareholders in a tough spot. The hold case rests on Coca-Cola’s defensive appeal, but a gain this large leaves less room for disappointment, the heart of the profit-taking argument.

Coca-Cola Outruns Its Beverage Rivals

Coca-Cola stock has pulled well ahead of its two closest beverage peers. Notably, PepsiCo (NASDAQ:PEP) stock is down 3% to $134.46 YTD. Monster Beverage (NASDAQ:MNST) stock is up 23% to $46.98 YTD, still behind Coca-Cola.

Each company runs a distinct business model. For its part, Coca-Cola sells concentrate and syrups to bottlers and owns brands including Sprite, Fanta, Powerade and BODYARMOR, while PepsiCo pairs beverages with a large snack business. Energy drinks are the focus at Monster.

Defensive Demand Explains Only Part of the Rally

A search for steadier names has supported consumer staples this year. The Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) is up 15% to $87.59 YTD, short of the gain in Coca-Cola stock. Coca-Cola shares made up 6.8% of the fund’s net assets as of June 30, one of its largest positions.

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Tech-heavy names have still done better than consumer staples; it’s worth noting that the Invesco QQQ Trust (NASDAQ:QQQ) is up 17% to $719.50 YTD. The XLP and QQQ ETFs have trailed Coca-Cola stock this year, pointing to company-specific strength beyond a defensive rotation.