Dutch Bros (BROS) ended the recent trading session at $60.12, demonstrating a -3.28% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Coming into today, shares of the drive-thru coffee chain operator and franchisor had gained 6.38% in the past month. In that same time, the Retail-Wholesale sector lost 1.59%, while the S&P 500 gained 0.55%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company is expected to report EPS of $0.1, up 42.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $425.5 million, up 24.13% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.68 per share and a revenue of $1.62 billion, signifying shifts of +38.78% and 0%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 3.78% rise in the Zacks Consensus EPS estimate. Dutch Bros is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Dutch Bros is currently exchanging hands at a Forward P/E ratio of 70.75. This represents a premium compared to its industry average Forward P/E of 18.43.
We can additionally observe that BROS currently boasts a PEG ratio of 2.16. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.96.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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