Buy Or Sell KDP Stock Ahead Of Its Upcoming Earnings?

Core Insights - Keurig Dr Pepper (KDP) is scheduled to release its earnings on July 24, 2025, with historical trends indicating a tendency for negative one-day returns post-announcement [2][3] - Analysts project earnings of $0.49 per share and sales of $4.14 billion for the upcoming quarter, reflecting growth from last year's earnings of $0.45 per share and sales of $3.92 billion [3] - The company has a market capitalization of $45 billion, with $16 billion in revenue over the last twelve months, resulting in operating profits of $3.3 billion and a net income of $1.5 billion, showcasing strong operational profitability [4] Historical Performance - Over the past five years, KDP has recorded 15 earnings data points, with 7 positive and 8 negative one-day returns, resulting in positive returns approximately 47% of the time [7] - The median of the 7 positive returns is 2.4%, while the median of the 8 negative returns is -1.9% [7] - The percentage of positive one-day returns increases to 67% when analyzing data from the last 3 years [7] Trading Strategies - Traders may consider establishing positions prior to the earnings announcement based on historical probabilities [6] - Post-earnings analysis can help traders evaluate the relationship between immediate and medium-term returns to inform their positioning [6] - A strategy involving the correlation between short-term and medium-term returns can be employed, particularly if a strong correlation exists between 1D and 5D returns [8]