Dutch Bros (BROS) ended the recent trading session at $61.41, demonstrating a -1.19% change from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 2.06%. At the same time, the Dow lost 1.76%, and the tech-heavy Nasdaq lost 2.39%.
Heading into today, shares of the drive-thru coffee chain operator and franchisor had lost 3.46% over the past month, lagging the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 1.63%.
The upcoming earnings release of Dutch Bros will be of great interest to investors. On that day, Dutch Bros is projected to report earnings of $0.1 per share, which would represent year-over-year growth of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $425.5 million, up 24.13% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.68 per share and revenue of $1.62 billion. These totals would mark changes of +38.78% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Dutch Bros. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dutch Bros is currently a Zacks Rank #2 (Buy).
In the context of valuation, Dutch Bros is at present trading with a Forward P/E ratio of 70.74. This denotes a premium relative to the industry average Forward P/E of 20.07.
Meanwhile, BROS's PEG ratio is currently 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 18% of all industries, numbering over 250.
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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