Dutch Bros (BROS) closed the most recent trading day at $54.09, moving -2.28% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.
Shares of the drive-thru coffee chain operator and franchisor have depreciated by 23.41% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.17%, and the S&P 500's gain of 3.08%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company is forecasted to report an EPS of $0.17, showcasing a 6.25% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $410.99 million, reflecting a 21.52% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.68 per share and revenue of $1.6 billion, which would represent changes of +38.78% and +25.04%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.54% upward. Dutch Bros presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 81.8. This denotes a premium relative to the industry average Forward P/E of 22.87.
One should further note that BROS currently holds a PEG ratio of 2.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 2.27 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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