Burlington, Massachusetts-based Keurig Dr Pepper Inc. (KDP) is a non-alcoholic beverage company. It owns, manufactures, and distributes beverages and single-serve brewing systems in the U.S. and internationally. With a market cap of around $50 billion, Keurig Dr Pepper operates through the U.S. Refreshment Beverages, U.S. Coffee, and International segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Keurig Dr Pepper fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the non-alcoholic beverages industry. It is known for its carbonated soft drinks, ready-to-drink teas and juices, and specialty coffees.
Keurig Dr Pepper has slipped 1.9% from its 52-week high of $37.58, reached on Sep. 3. KDP stock has gained 6.6% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 3.8% gains during the same time frame.
Over the longer term, KDP is up 10.7% in 2024, outperforming the Dow Jones’ 7.1% returns on a YTD basis. However, KDP gained 10.6% over the past 52 weeks, lagging behind DOWI’s 17.1% gains over the past year.
To confirm the recent bullish trend, KDP has been trading above its 200-day moving average since late April and above its 50-day moving average since late July.
Shares of Keurig Dr Pepper rose 1.3% on Jul. 25 after the release of its strong Q2 earnings results, with a $3.9 billion net sales figure reflecting 3.5% year-over-year growth and adjusted EPS climbing 7.1% to $0.45. The company’s reaffirmation of its full-year guidance, including mid-single-digit net sales growth and high-single-digit EPS growth, supported investor confidence.
Keurig Dr Pepper’s competitor, PepsiCo, Inc. (PEP), has underperformed KDP. PEP is up marginally over the past year and 4.2% on a YTD basis.
Despite KDP’s recent outperformance, analysts are cautiously optimistic about its prospects. Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” As of writing, KDP is trading slightly below the mean target price of $36.94.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
