Coca-Cola Loses Fizz As Value Score Drops After 15% YTD Surge, Tepid 2026 Outlook

Core Insights - Coca-Cola Co. has experienced a significant drop in its Benzinga Edge value score from 17.86 to 3.28, indicating a potential overvaluation after a 15% year-to-date stock gain following its Q4 2025 earnings report [1][2]. Financial Performance - The company's fourth-quarter earnings report showed mixed results, with adjusted earnings per share of $0.58 beating expectations, but revenue of $11.80 billion fell short of the $12.02 billion forecast, marking the first revenue miss in five years [3]. - The stock's recent double-digit gains, combined with the revenue shortfall, have led to its placement in the bottom 10% of stocks for relative worth [3]. Valuation Concerns - The current value score of 3.28 suggests a significant disconnect between the stock's market price and its underlying operating performance, raising concerns about its valuation [4]. - As leadership transitions to Henrique Braun on March 31, the company faces the challenge of demonstrating its ability to regain market confidence without further valuation corrections [4]. Market Performance - Year-to-date, Coca-Cola's shares have increased by 15%, outperforming the S&P 500 index, which rose only 0.33% during the same period [5]. - Over the last six months, the stock has risen by 13.35%, and by 13.44% over the past year, although it was down 0.24% in premarket trading on Thursday [5].