KDP trade ideas
Hidden Beverage Stock: Dr Pepper Snapple Group Long-term Investment Potential:
• Beverage stocks are typically strong for long-term investment strategies.
• Relatively Crisis-resistant, with a steady increase in profits.
• Offer solid dividends.
Revenue Breakdown (Approximate values):
• 35% of revenue comes from coffee.
• 65% of revenue comes from the beverage business (e.g., sodas, soft drinks).
Brands:
• Major brands include Dr Pepper, Schweppes, 7up, etc.
Geographical Focus:
• Primarily active in the USA, with 87.5% of revenue generated from the U.S.
• The U.S. is one of the most competitive and consumer-friendly markets.
Financial Metrics (2018-2023): KDP (left) and beverage peers (right)
• Net Sales CAGR: 6% / Beverage Peers: 7%
• Earnings Per Share (EPS) CAGR: 11% / Beverage Peers: 4%
• Total Shareholder Return (TSR): 64% cumulative over the period / Beverage Peers: 36%
• Price-to-Earnings (P/E): 15x / Beverage Peers: 21x
Other indicators:
Piotroski F-Score: 7, indicating relatively strong financial health.
• Fair Value: The stock appears undervalued, with potential to rise to $41-$43 over the next months/years.
• GF Value Rank: 85/100.
• Caution: There is concern it could be a value trap despite positive valuation indicators.
Market Share:
• Dr Pepper market share: 9%.
• Diet Dr Pepper market share: 3%.
• For comparison, Fanta holds a 3% market share.
Stock Performance:
• Performance 2024 around 10%+.
• Insider confidence is high, with a significant number of insider buys since 2023.
Personal Opinion
• I think the stock is undervalued, with a potential price increase to $41-$43 in the next months or year. Personally, I now hold a small position in my portfolio, but my strategy on this stock is long term hold.
• P/E ratio of 15x suggests the stock is relatively affordable compared to peers.
• There are, however, warnings of a potential value trap, where the stock may underperform despite appearing cheap.
This information is for informational purposes only and does not constitute financial or investment advice. Always do your own research or consult a financial professional before making investment decisions.
Increased probability of valuation in KDPInterpretation of the KDP chart:
The Fibo clouds on KDP's daily chart have gradually aligned giving favorable support to the candles' evolution. The compactness of the Fibo clouds from different time periods signals the direction and strength towards the first target to be reached
When the first target is reached, the stop loss must be moved to the position where the entry was made. The aim of this action is to protect the result achieved and ensure that there is enough time to pursue the remaining objectives with a reduced risk of losing the trade.
The use of risk management, an integral part of this method, has been fundamental to achieving the planned results.
Risk-Return Ratio 3
Dr Pepper 5324I've been loading up on all the stocks that have products that I enjoy and consume on occasion. And that I see that others love as well. Almost everyone loves Dr Pepper and their line of products is top notch.
It looks to have busted out of its downward trend. Im extremely bullish on REAL things and solid food and drink businesses. The most bullish one for me is still Hershey. General Mills is up there with KDP for me .
These are my opinions. I have started to move away from putting money into degen altcoins. Instead holding mostly BItcoin, using futures for alts and buying solid stocks and other irl collectibles.
Still bullish on gold and silver as a long term hold
Dr. Pepper Showing Strength When The Market Is WeakThis is perplexing, market structure speaking, Dr. Pepper is in a downtrend. Price is sitting at the top of a channel. The monthly candle looks weak and the weekly is all that promising. The question here is whether or not to take the long trade and pullback. Why? Well, two big down days in the market, and Dr. Pepper endured those with two green days.
Dr. Pepper Setting Up For a LongI am not willing to take this long given that it is in the upper channel of a downward trend. I also provide a couple of other examples of trades that are/ were in a similar setup just at a better point in the over all trend.
KDP Swing Hourly / Daily Long Aggressive Trend TradAggressive Trend Trade 8F
- short balance
- unvolumed ICE
+ bigest volume Sp
- weak volume test closed below ICE
+ first bullish bar close similar level entry
Calculated affordable virtual stop loss
1 to 2 R/R take profit before volume resistance zone / before CREEK
Daily Context
- short impulse
+ biggest untested volume T1
+ biggest untested volume manipulation
+ support level
Monthly Context
- short impulse
+ 1/2 correction
+ biggest volume 2Sp+
- strong test below 1/2 correction
KDP shortIf this trade triggers and then stops out, I will put Dr. Pepper in my coffee maker "as the water" and make some Dr pepper coffee and DRINK IT! ;-)
;-)
;-)
AND FILM IT
2024 Q1 Possible Long (Try #2): Keurig - Dr. PepperAh, once again I'll try with this name. If it can break and hold that historical support/resistance area, then it should definitely rally, at least to a point, this time.
...should
KDP Cup and HandleKDP is showing an interesting cup and handle with a potential measured move of 5 points. A break below support invalidates the pattern. Today's action is less comforting, so tight stops are needed for short-term plays.
Keurig Dr Pepper Analysis on 18th of October
Keurig Dr Pepper Inc. is a major player in the non-alcoholic beverage industry. The company's fundamentals appear solid, with a healthy operating margin and a positive profit margin. The P/E ratio is relatively high, suggesting that the stock might be overvalued. The company has a moderate level of short interest, but it's not alarmingly high. The recent earnings show a positive surprise, indicating that the company performed better than analysts' expectations.
However, the stock's performance over the past year and YTD has been negative, which might be a concern for potential investors. The Sharpe ratio is also in the negative territory, indicating that the risk-adjusted performance hasn't been great.
Outlook:
Given the mixed signals from the fundamentals and technicals, it's challenging to provide a definitive outlook for the next 6 months. While the company's fundamentals are strong, the stock's recent performance and the broader market conditions will play a significant role in its future trajectory. Investors should keep a close eye on the company's upcoming earnings and any significant industry or macroeconomic developments.
Position: Neutral
Please note that this is a short analysis and does not take into account all possible factors. It's always recommended to conduct thorough research and consult with a financial advisor before making investment decisions.
Cup and Handle SetupGoing long based on the cup and handle. If it breaks out of the pattern, I'll assess from there; especially since the upside is limited by the Fibonacci level.
KDP - Dr Pepper looking promisingThe count kind of speaks for itself. It looks like we could be near the completion of a considerably large correction into wave (2).
Questions are always welcome, trade safe!
KDP - Falling WedgeFalling Wedge structure drawn
I expect a downward move to about $30 and then return upwards with the bullish trend on higher timeframes
DRPEPPER Stock Chart Fibonacci Analysis 022023Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 35.3/61.80%
$KDP with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $KDP after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 75%.
WATCH $KDPBearish
Fundamental
- Negative PEG
- High P/FCF ratio
- High PE ratio
- Stable earnings
TA
- Rising wedge
- Momentum divergence
- High volume spoke on breaking down
$KDP with a Bearish outlook following its earnings #Stocks The PEAD projected a Bearish outlook for $KDP after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 71.43%.
KDP USASun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
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$KDP Setting up for Potential ATHsWeekly chart that is looking very nice and showing potential leadership for the next market up trend.
One to add to the watch list and keep an eye on
KDP Long bull flagAn example of a market that is at ATHs but the long term uptrend is still intact. May be starting to show signs of topping out so will be on the watch out for failures at the previous high.
KDP - Possible short positionDears,
KDP is heading to all time high resistance, if the resistance is broken, then possible retest at $37 then it will go higher.
Looking to this from different perspectives, i think this is going lower after hitting the resistance at $37.
Once this confirmed, i will open a short position, most probably PUT options for middle 2022.
Let me know your thoughts.
Thanks,
Sam.
