Dr Pepper gets a boost
Shares of the beverage company are up despite a decline in both sales and shipments this quarter.
In Wednesday's "Stock of the Day" video, Motley Fool analyst Simon Erickson and host Mark Reeth take a look at Dr Pepper, and the soda industry as a whole. Simon notes that sales overall of soda in the U.S. may be in secular decline, as movements towards healthy food and drink continue to gain traction.
The biggest story in this space, however, is Coca-Cola's (KO) recent deal with Green Mountain Coffee Roasters (GMCR), to potentially release a version of Coke's beverages that can be made at home. Simon says that with Coke and PepsiCo (PEP) having mirrored each other's every move throughout the years, he'll be looking to Pepsi to follow suit and make a similar deal.
So what of the smaller player in the game, Dr Pepper? Simon says that while he sees it as a good company with a pretty attractive dividend, and a steady performer that has tripled since the downturn, he sees the soda game as being all about the ability to scale distribution. If he were investing in soda today, Simon says he'd be picking one of the bigger players in the space.
The Motley Fool's 12 top stocks for 2014 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2014: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2014! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.