Massachusetts-based Keurig Dr Pepper Inc. (KDP) stands out as a beverage powerhouse in North America, commanding a diverse lineup of over 125 brands across soft drinks, coffee, tea, juice, water, and more. With a market cap of nearly $46 billion, the company holds leading positions in multiple drink categories and operates the top single-serve coffee system in the U.S. and Canada. 

Its unique partnership model continues to drive growth in emerging segments, such as energy drinks and premium coffee, with household names like Dr Pepper, Keurig, Canada Dry, Snapple, and Green Mountain Coffee anchoring its portfolio. The company is expected to release its fiscal 2025 second-quarter earnings report before the market opens on Thursday, July 24. 

Ahead of this event, analysts project Keurig Dr Pepper to report a profit of $0.49 per share, up 8.9% from $0.45 per share reported in the year-ago quarter. Impressively, the company has either met or surpassed Wall Street's bottom-line estimates in each of the past four quarters.

Over the longer term, analysts forecast the beverage giant to report an EPS of $2.04 in fiscal 2025, representing a 6.3% increase from the $1.92 reported in fiscal 2024. The pace is anticipated to continue into fiscal 2026, with EPS projected to climb another 6.9% to $2.18. 

Shares of the beverage company are up roughly 3.3% over the past year, lagging behind the broader S&P 500 Index's ($SPX) modest 13.4% return during the same stretch. Narrowing the focus, KDP is also trailing behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.5% gain over the past year. 

KDP shares took a 2.1% hit on April 24 after the company unveiled its fiscal 2025 Q1 earnings report. Net sales rose 4.8% to $3.64 billion, topping Wall Street’s forecast of $3.57 billion. Earnings came in strong too, with adjusted EPS jumping 10.5% year-over-year to $0.42, beating expectations by the same margin. However, the market reaction turned sour as cracks emerged beneath the surface. Net sales in the U.S. Coffee segment slipped 3.7%, while the international segment saw a steeper 6.3% drop, raising concerns about weakness in key parts of the business.

Nevertheless, analysts' consensus view on KDP remains somewhat optimistic, with an overall "Moderate Buy" rating. Among 17 analysts covering the stock, 11 suggest a "Strong Buy," one recommends a "Moderate Buy,” and five give a “Hold” rating. KDP’s mean price target of $39.05 represents a 15.6% premium to current price levels.