Dutch Bros (BROS) closed the most recent trading day at $62.04, moving -3.78% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
The stock of drive-thru coffee chain operator and franchisor has risen by 8.63% in the past month, leading the Retail-Wholesale sector's loss of 0.17% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. In that report, analysts expect Dutch Bros to post earnings of $0.1 per share. This would mark year-over-year growth of 42.86%. At the same time, our most recent consensus estimate is projecting a revenue of $425.5 million, reflecting a 24.13% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.68 per share and a revenue of $1.62 billion, representing changes of +38.78% and +26.47%, respectively, from the prior year.
Any recent changes to analyst estimates for Dutch Bros should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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 past month, there's been a 1.07% rise in the Zacks Consensus EPS estimate. Dutch Bros is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dutch Bros has a Forward P/E ratio of 95.43 right now. This denotes a premium relative to the industry average Forward P/E of 19.76.
We can additionally observe that BROS currently boasts a PEG ratio of 2.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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