Beverage giant Keurig Dr Pepper has been a steady Eddie during the pandemic, reporting double-digit profit growth and positive sales gains for at least the past four quarters. When building a watchlist, stocks with a Relative Strength Rating of 80 or higher are showing unusual strength and ones to watch. RS Rating. Keurig Dr Pepper now meets that criteria, with an increase from 80 to 84 Tuesday. Keurig Dr Pepper shares rose 0.7% Wednesday afternoon to 38.42.
The 84 RS Rating means that Keurig Dr Pepper stock has outperformed 84% of all stocks the past year. Market research shows that the top-performing stocks tend to have an RS Rating north of 80 as they launch their biggest price moves.
Keurig Dr Pepper Stock In High Demand
Its other key ratings are mixed. Despite its recent steady profit growth, the coffee and soft drink company's EPS Rating is just 45, reflecting weaker profit growth in prior years. However, Keurig Dr Pepper stock holds a strong 83 Composite Rating, putting it in the top 17% of all stocks.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Tellingly, the Street expects stronger growth ahead. The Burlington, Mass.-based company's stock has a B+ Accumulation/Distribution Rating, showing that institutional investors are fairly heavy buyers of its stock.
Keurig Dr Pepper reported 13% earnings growth in the latest quarterly report, to 44 cents per share. That followed quarters in which EPS grew 11%, 14% and 15%. Revenue rose 8% last quarter to $3.25 billion.
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Keurig Dr Pepper stock is still in a buy range after clearing a 37.21 buy point in a flat base. The buy range goes up to 5% above the buy point, or 39.07.
Keurig Dr Pepper stock earns the No. 4 rank among its peers in the Beverages-Non-Alcoholic industry group. Coca-Cola Europacific and Coca-Cola are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
