Jun. 08, 2025 2:40 AM ETKeurig Dr Pepper Inc. (KDP) StockCCEP, FMX, MNST, KOF, EMBVF, KDPAbdul-Rahman Bhery14 Followers(12min)SummaryKeurig Dr Pepper is attractively valued at 15.9x forward P/E, below the peer average of 21.6x, and offers a solid 2.8% dividend yield.The company is experiencing strong earnings momentum, with projected EPS growth at a 6% CAGR from 2025 to 2027, supported by margin expansion and rising beverage sales.While the coffee segment remains weak, easing coffee prices and potential promotions may support a recovery by late 2025 or early 2026.Despite new U.S. coffee tariffs and potential cost pressures, Keurig Dr Pepper is expected to sustain growth, supported by price increases, declining coffee futures, and strong cost management.A re-rating is likely if coffee sales recover and energy drink expansion continues, supporting the $42.50 price target by 2026–2027; representing 31% upside from current levels.SolStockBuy Keurig Dr Pepper: Cheap Valuation, Rising EPS, and 2.8% YieldKeurig Dr Pepper (NASDAQ:KDP) offers a compelling investment opportunity for value-oriented and dividend-growth seeking investors. KDP enjoys solid fundamentals as it reported 4.8% revenue growth and 13.1% net profitThis article was written byAbdul-Rahman Bhery14 FollowersI am an enthusiastic equity research and investment analyst with a strong interest in applying my valuation and research skills. I am a certified FMVA (Financial Modeling & Valuation Analyst) and FPWMP (Financial Planning & Wealth Management Professional), credentials that have equipped me with the tools to analyze financial statements, build valuation models, and construct diversified investment portfolios. I participated in the CFA Research Challenge, where I gained practical experience in equity analysis, industry research, and presenting investment recommendations in a real-world setting. In 2023, I joined AIESEC, where I further developed my leadership, communication, and teamwork skills through global exchange and project collaboration. My analytical focus lies in the U.S. equity market, with particular interest in the consumer staples sector, where I believe defensive stocks offer resilient long-term opportunities. I have also worked with a confidential client, preparing investment reports across several sectors including healthcare, consumer staples, and industrials. This role enhanced my ability to evaluate companies across diverse industries and tailor my research approach accordingly. I hold a degree in Finance from the Faculty of Business at Alexandria University, graduating in 2024 with a CGPA of 3.6. I am now seeking to publish well-supported articles that deliver valuable insights to investors.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You