Is Keurig Dr Pepper Stock Underperforming the S&P 500?

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Is Keurig Dr Pepper Stock Underperforming the S&P 500?

Keurig Dr Pepper Inc. (KDP) is a leading beverage company headquartered in Frisco, Texas, with more than 150 owned, licensed, and partner brands. With a market capitalization of $44.4 billion, the company manufactures, markets, and distributes soft drinks, coffee, water, tea, and other beverages through an extensive distribution network serving consumers across retail, e-commerce, convenience, and foodservice channels worldwide.

Companies valued between $10 billion and $200 billion are generally classified as “large-cap stocks,” and Keurig Dr Pepper comfortably fits this category. Its substantial market capitalization reflects its size, influence, and established presence in the non-alcoholic beverages industry. 

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KDP is currently 3.8% below its 52-week high of $33.82, reached on June 29, 2026. Over the past three months, KDP shares have gained 5.9%, slightly outperforming the S&P 500 ($SPX), which has risen 3.6% over the same period.

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Shares of KDP have climbed 16.2% year-to-date, outperforming the S&P 500’s 12.1% gain over the same period. However, the stock’s 17.8% gain over the past 52 weeks slightly trails the S&P 500’s 18.1% return.

KDP has traded above its 200-day moving average since late April and above its 50-day moving average since mid-August, suggesting an upward trend.

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KDP’s underperformance over the past year may reflect its mediocre long-term revenue growth, which averaged just 5.7% annually over the past three years and trailed the broader consumer staples sector, potentially limiting investor enthusiasm. More recently, weakness in its U.S. coffee business may have weighed on its relative performance, with sales down 3.2% in Q2 as volumes fell 8.2%. The company also maintained its 2026 forecasts, potentially limiting expectations for stronger near-term growth. Nevertheless, KDP delivered strong Q2 results overall, with U.S. Refreshment Beverages sales rising 10%, driven by demand for Dr Pepper Zero Sugar, Ghost energy drinks, and Electrolit hydration products, while sales and adjusted profit exceeded expectations.

Within the competitive non-alcoholic beverages industry, top rival The Coca-Cola Company (KO) has outperformed KDP, gaining 26.4% year-to-date and 31% over the past 52 weeks.

Wall Street analysts are bullish on KDP’s prospects. The stock carries a consensus “Moderate Buy” rating from the 17 analysts covering it. The mean price target of $36.17 implies 11.1% upside from current 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.

 

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