Wall Street Analysts Change Views on 2 Outperformers

Most analysts were already bearish on KDP

by Josh Selway

Published on Apr 11, 2019 at 10:29 AM

Beverage expert Keurig Dr Pepper (NYSE:KDP) and trash giant Waste Management, Inc. (NYSE:WM) have both been strong performers on the charts, but today analysts have weighed in bearishly on the stocks. Below is a brief look at the shares of KDP and WM.

Morgan Stanley downgraded its rating on Keurig Dr Pepper to "underweight" from "equal-weight," and trimmed its price target by $3 to $24. The brokerage firm is worried about increased competition from Coca-Cola (KO) and cheaper coffee-brewing brands. Most analysts already have a bearish view on KDP, with nine of the 14 in coverage handing out "hold" recommendations coming into today.

The stock has been a huge winner since the merger of Dr Pepper and Keurig back in July, enjoying a series of higher lows since that time. While the shares are down 3.5% today at $27.06, they're sitting just below their November high of $28.81, and appear to be getting support once again from the 80-day moving average.

WM stock, meanwhile, is off 4.5% at $98.58, after Stifel cut its rating to "hold" from "buy," based on concerns around the company's recycling business. Despite the pullback, the shares are up almost 12% in 2019, and could find a familiar floor at the $98 level, which contained a pullback one month ago.

There's been notable options activity out of the gate on Waste Management today, with traders picking up the April 95 put, opening new positions that could be betting on an extended pullback from the equity. However, the stock's long-term success on the charts means any put activity on WM could be from shareholders protecting paper profits with options.

From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.
2 Stocks Sinking on Healthcare Sector Uncertainty
Both names are seeing heavier-than-usual options activity
Bear Note Pushes Cronos Group Stock Lower
BofA-Merrill Lynch just initiated coverage with an "underperform" rating
The Race for Pot Profits Is On
The race for marijuana profits is on... and one up-and-comer is taking the "Buffett" approach to profits.