Keurig Dr Pepper Is Brewing A Comeback: Strong EPS And Cheap Valuation

  • Keurig 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.