Dutch Bros (BROS) closed the most recent trading day at $66.50, moving +2.26% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.36%, and the tech-heavy Nasdaq gained 0.72%.
The drive-thru coffee chain operator and franchisor's stock has dropped by 3.72% in the past month, falling short of the Retail-Wholesale sector's gain of 2.87% and the S&P 500's gain of 2.38%.
Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. The company is expected to report EPS of $0.17, up 6.25% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $410.99 million, indicating a 21.52% growth compared to the corresponding quarter of the prior year.
BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.68 per share and revenue of $1.6 billion. These results would represent year-over-year changes of +38.78% and +25.04%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.54% higher. Dutch Bros is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 96.1. Its industry sports an average Forward P/E of 19.93, so one might conclude that Dutch Bros is trading at a premium comparatively.
Meanwhile, BROS's PEG ratio is currently 3.16. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants was holding an average PEG ratio of 2.28 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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