Our Next Lockdown Winner – Now Revealed
As I’m sure you know, we’ve given you a long list of pandemic winners here in Trade of the Day…
War Room members started by getting into Clorox before anyone else…
They were some of the first to move into Teladoc Healthand Zoom…
Followed by HormelFoods, Flir Systems, AMC Entertainment, Bloomin’ Brands, Bed Bath & Beyond, Pfizer, Ulta Beauty and Tilray.
The point is…
Throughout this lockdown pandemic, Karim and I have successfully navigated members through this market volatility with extreme precision – and tremendous profitability.
And today, with my newest pick, I have every intention of keeping that trend going…
You see, one new stay-at-home position that I really like right now is Keurig Dr Pepper (NYSE: KDP).
I’m confident that working from home will now represent a new normal in the U.S.
And if this is the new reality, then it’s easy to understand why one of the first things every new at-home worker will do is upgrade their coffee maker.
With an 80% share of the popular K-Cup, single-serve coffee market, Keurig Dr Pepper stands to really capitalize.
In fact, it’s one of the rare companies actually growing sales and margins right now.
Back on April 29, Keurig Dr Pepper beat revenue expectations by 2.5%, reporting sales of $2.6 billion.
Not only that, but adjusted net earnings of $0.29 per share beat the consensus estimate of $0.27 – outperforming the prior year’s adjusted earnings of $0.25 per share.
If it’s growing year over year – in this environment – then that’s pretty damn strong.
Even when coffee shops reopen, the value argument holds up. Instead of spending $4.50 for a coffeehouse latte, making one for yourself at home for pocket change continues to favor Keurig Dr Pepper.
And coffee is just one piece of its business empire…
It has Snapple, Mott’s, Hawaiian Punch, Yoo-hoo, Vita Coco, Evian, Canada Dry and 7UP… just to name a few!
Right now, the most bullish analyst values Keurig Dr Pepper at $33 per share, while the most bearish analyst values it a $25. So the risk versus reward at current levels works in your favor.
Action Plan: For our next work-at-home winner, I like the idea of owning shares of Keurig Dr. Pepper at current levels. Oh, throw in a forward annual dividend yield of 2.28%, and that idea only gets stronger.
Get a position now!
For more work-at-home winners, join me in The War Room!
About Bryan Bottarelli
Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.