Is Keurig Dr Pepper Stock Underperforming the S&P 500?
Burlington, Massachusetts-based Keurig Dr Pepper Inc. (KDP) owns, manufactures, and distributes beverages and single-serve brewing systems in the United States and internationally. With a market cap of $44.5 billion, the company operates through U.S. Refreshment Beverages, U.S. Coffee, and International segments.
Companies worth $10 billion or more are typically referred to as "large-cap stocks." KDP fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the non-alcoholic beverages industry. The company is a leader in soft drinks, specialty coffee and tea, water, juice and juice drinks, and mixers, offering famous beverages including Dr Pepper, Green Mountain Coffee Roasters, Canada Dry, Snapple, and more.
Despite its strengths, the stock has plunged 13.9% from its 52-week high of $38.28 touched on Sep. 24, 2024. Moreover, over the past three months, KDP stock has declined 1.1%, underperforming the S&P 500 Index’s ($SPX) 4.1% uptick during the same time frame.
KDP stock has gained 2.7% on a YTD basis, outperforming SPX’s 2.1% uptick in 2025. Meanwhile, KDP has declined 4.8% over the past 52 weeks, significantly underperforming SPX’s 12.3% gains.
KDP has been trading below its 200-day and 50-day moving averages since early May, indicating a downtrend.
Despite posting impressive Q1 earnings, KDP stock declined 2.1% on Apr. 24. The company reported a 4.8% year-over-year growth in its revenue to $3.6 billion, driven by volume growth of 3.6% and favorable net price realization of 2.8%, and surpassed the Street’s estimates. Its adjusted operating income also rose 3.9% from the prior year’s quarter to $847 million, primarily driven by net sales growth, productivity savings, and overhead efficiencies. Furthermore, KDP’s adjusted earnings for the quarter grew 10.5% year-over-year to $0.42 and surpassed the consensus estimates by 10.5%.
Its top competitor, PepsiCo, Inc. (PEP), has declined 14.5% in 2025 and 24% in the past 52 weeks, underperforming the stock.
Among the 18 analysts covering the KDP stock, the consensus rating is a “Moderate Buy.” Its mean price target of $39.10 suggests a modest 18.6% upside potential from current price levels.
On the date of publication, Kritika Sarmah 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.