Keurig Dr Pepper Inc. (KDP) is a non-alcoholic beverage company situated in Burlington, Massachusetts. Valued at a market cap of $45.6 billion, it owns, manufactures, and distributes beverages and single-serve brewing systems in the U.S. and internationally.
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.
KDP leverages its diverse portfolio of popular brands across beverages, from coffee to soft drinks. Its strong distribution network ensures broad market reach, while its innovation in product offerings, such as single-serve coffee systems and healthier beverage options, keeps it ahead of consumer trends. Additionally, the company’s robust brand recognition and strategic partnerships with retailers provide a solid foundation for sustained growth and market dominance.
However, it's not all sunshine and rainbow for Keurig Dr Pepper. Its shares have slipped 12.4% from its 52-week high of $38.28, reached on Sep. 24. KDP stock has dropped 9.9% over the past three months, compared to the Consumer Staples Select Sector SPDR Fund’s (XLP) 1.2% decline over the same time frame.
Over the longer term, KDP is up marginally in 2024 and has surged 4.4% over the past 52 weeks, lagging behind XLP’s 17.9% gains over the past year and 14.7% rise in this year.
To confirm the recent bearish trend, KDP has been trading below its 200-day and 50-day moving averages since late October.
Keurig Dr Pepper shares dropped over 4% on Oct. 24 after reporting Q3 earnings. Its net sales of $3.89 billion, which missed the consensus estimate of $3.92 billion.
Keurig Dr Pepper’s competitor, PepsiCo, Inc. (PEP), has underperformed KDP. PEP has fallen 3.5% over the past year and 5.9% on a YTD basis.
Analysts are cautiously optimistic about its prospects. Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” KDP’s mean price target of $38.35 indicates an upside potential of 14.4% from the current market prices.
