Stockchase Opinions

Jim Cramer - Mad Money Keurig Dr Pepper KDP-Q DON'T BUY Jun 23, 2025

Doesn't like this space. The Sec. of Health and Human Services is against it and the GLP-1s are another headwind.

$33.260

Stock price when the opinion was issued

breweries beverages
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BUY
KDP was a merger of Keurig and Dr. Pepper. Today, they announced mid-single-digit sales growth and high-single-digit earnings growth with $4 billion in discretionary cash flow over the next three years. They want to reward shareholders with special dividends and/or share buybacks or an acquisition. It's a safety stock that knows how to grow.
BUY

Sold it to buy Amazon but still likes KDP, which has a better long-term story than Pepsi or Coke, which trades around 23x forward PE (KDP is 19x). Likes KDP's 5% volume growth and M&A.