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.
On the date of publication, Neha Panjwani 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.
More news from Barchart
- Down 41% From Its Highs, Should You Buy the Dip in MP Materials Stock?
- How to Use the Naked Put Options Strategy to Earn Income & Buy Stocks at a Discount
- Dan Ives Says AI Bubble Fears Are ‘Overblown’ and He’s Betting on This 1 Data Center Stock Now
- S&P Futures Tick Higher With U.S. Economic Data in Focus
