Dutch Bros (BROS) closed the most recent trading day at $48.88, moving -1.53% from the previous trading session. This change was narrower than the S&P 500's 2.71% loss on the day. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.
Shares of the drive-thru coffee chain operator and franchisor witnessed a loss of 25.35% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.01%, and the S&P 500's gain of 3.5%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. In that report, analysts expect Dutch Bros to post earnings of $0.17 per share. This would mark year-over-year growth of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $410.74 million, up 21.45% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.68 per share and revenue of $1.6 billion, indicating changes of +38.78% and +25.02%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Dutch Bros holds a Zacks Rank of #3 (Hold).
In terms of valuation, Dutch Bros is presently being traded at a Forward P/E ratio of 73.36. This signifies a premium in comparison to the average Forward P/E of 22.25 for its industry.
Also, we should mention that BROS has a PEG ratio of 2.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.22.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 27% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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