Dutch Bros (BROS) ended the recent trading session at $61.69, demonstrating a -1.09% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
The drive-thru coffee chain operator and franchisor's shares have seen an increase of 1.98% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.12% and outstripping the S&P 500's gain of 1.89%.
Investors will be eagerly watching for the performance of Dutch Bros in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.1, indicating a 42.86% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $425.5 million, indicating a 24.13% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.68 per share and revenue of $1.62 billion, which would represent changes of +38.78% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.24% increase. As of now, Dutch Bros holds a Zacks Rank of #2 (Buy).
In terms of valuation, Dutch Bros is currently trading at a Forward P/E ratio of 70.99. This denotes a premium relative to the industry average Forward P/E of 19.82.
It's also important to note that BROS currently trades at a PEG ratio of 2.17. 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 2.06 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
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.
You can find more information on all of these metrics, and much 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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