Burlington, Massachusetts-based Keurig Dr Pepper Inc. (KDP) owns, manufactures, and distributes beverages and single-serve brewing systems. Valued at $38.3 billion by market cap, the company offers soft drinks, juices, teas, mixers, water, and other beverages.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and KDP perfectly fits that description, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the non-alcoholic beverages industry. KDP has a killer brand portfolio, with iconic names like Keurig, Dr Pepper, and Snapple, driving customer loyalty and steady revenue. Strategic control over production and distribution channels ensures a strong market presence and product availability.
Despite its notable strength, KDP slipped 22.1% from its 52-week high of $36.12, achieved on Apr. 4. Over the past three months, KDP stock declined 2.7%, underperforming the Dow Jones Industrials Average’s ($DOWI) 4.8% gains during the same time frame.
In the longer term, shares of KDP fell 15.4% on a six-month basis and dipped 13.6% over the past 52 weeks, underperforming DOWI’s six-month gains of 12.2% and 6% returns over the last year.
To confirm the bearish trend, KDP has been trading below its 200-day moving average over the past year, with some fluctuations. However, the stock is trading above its 50-day moving average since mid-November.
On Oct. 27, KDP shares closed up by 7.6% after reporting its Q3 results. Its net sales stood at $4.3 billion, up 10.7% year over year. The company’s adjusted EPS grew 5.9% year over year to $0.54.
In the competitive arena of non-alcoholic beverages, The Coca-Cola Company (KO) has taken the lead over KDP, showing resilience with a 1.9% downtick on a six-month basis and 11% gains over the past 52 weeks.
Wall Street analysts are reasonably bullish on KDP’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $34.62 suggests a potential upside of 23.1% from current price levels.
