Dutch Bros (BROS) closed the most recent trading day at $62.88, moving -1.53% from the previous trading session. This change lagged the S&P 500's 0.32% gain on the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.
Coming into today, shares of the drive-thru coffee chain operator and franchisor had lost 7.37% in the past month. In that same time, the Retail-Wholesale sector gained 3.84%, while the S&P 500 gained 4.51%.
The upcoming earnings release of Dutch Bros will be of great interest to investors. The company is predicted to post an EPS of $0.18, indicating a 5.26% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $401.06 million, up 23.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.59 per share and a revenue of $1.58 billion, demonstrating changes of +20.41% and +23.35%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.83% fall in the Zacks Consensus EPS estimate. Dutch Bros presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Dutch Bros is presently trading at a Forward P/E ratio of 107.72. This expresses a premium compared to the average Forward P/E of 20.84 of its industry.
Also, we should mention that BROS has a PEG ratio of 3.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Retail - Restaurants industry stood at 2.65 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dutch Bros Inc. (BROS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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