Update (9:45 a.m.): Updated with Tuesday market open information.
NEW YORK (TheStreet) -- Wells Fargo downgraded Dr. Pepper Snapple Group (DPS - Get Report) to "underperform" from "market perform" and reduced its estimates. The firm cited increased competition as the reason for the move.
The stock was down 1.55% to $52.85 at 9:45 a.m. on Tuesday.
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- Net operating cash flow has increased to $250.00 million or 28.86% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.32%.
- DR PEPPER SNAPPLE GROUP INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DR PEPPER SNAPPLE GROUP INC increased its bottom line by earning $3.06 versus $2.96 in the prior year. This year, the market expects an improvement in earnings ($3.41 versus $3.06).
- The gross profit margin for DR PEPPER SNAPPLE GROUP INC is rather high; currently it is at 61.79%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.66% trails the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: DPS Ratings Report