Coca-Cola (KO) and Procter & Gamble (PG) have both risen sharply over the past month or two, which the author attributes mainly to investors moving from AI-related stocks into defensive consumer staples after a mid-October selloff. P&G's fiscal first-quarter results beat estimates, with organic sales growth accelerating to 4% on higher volumes, while Coca-Cola's Q3 revenue rose 7% to $13.4 billion and it raised its 2026 guidance to at least 5% organic revenue growth and at least 11% non-GAAP earnings growth. P&G closed its $3.9 billion acquisition of Thorne this month, and Coca-Cola will take over KFC's U.S. beverage business in 2027, ending PepsiCo's supply role. The author argues the rally reflects short-term sentiment rather than a verdict on long-term prospects, and views P&G as more reasonably priced at 23 to 24 times forward earnings versus 26 to 28 times for Coca-Cola, which has risen more than 32% this year.
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