Coca-Cola Stock Hits New All-Time High, But Has It Gotten Too Expensive?

Coca-Cola (NYSE: KO) has been on a tear in 2026, with its shares rising by an impressive 25% so far this year. This outpaces the broader market's growth, as the S&P 500 is up just 13%. The beverage giant recently hit a new all-time high, but some analysts are questioning whether the stock has gotten too expensive.

According to Coca-Cola, its sales are expected to grow by around 5% this year. While that may not sound impressive at first glance, it's actually in line with the company's five-year average growth rate of about 6%. However, some analysts point out that Coca-Cola's growth has slowed down significantly since the company raised prices due to inflation.

One reason investors may be drawn to Coca-Cola is its status as a safe-haven stock. Its business is stable and profitable, and it pays a dividend yield of around 2.4%. However, some analysts believe that the stock's valuation has gotten too high, with a price-to-earnings ratio of around 26.

The Motley Fool's Stock Advisor analyst team recently identified Coca-Cola as one of the 10 worst stocks to buy right now. In fact, their analysis suggests that investors who bought Coca-Cola at its current price could be setting themselves up for losses in the future.