Dutch Bros (BROS) closed the most recent trading day at $58.88, moving -3.43% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Shares of the drive-thru coffee chain operator and franchisor have depreciated by 4.75% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.24%, and the S&P 500's gain of 0.18%.
Analysts and investors alike will be keeping a close eye on 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. Our most recent consensus estimate is calling for quarterly revenue of $425.64 million, up 24.17% from the year-ago period.
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 pay attention to any latest changes in analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 1.27% lower. Dutch Bros is currently a Zacks Rank #3 (Hold).
In terms of valuation, Dutch Bros is presently being traded at a Forward P/E ratio of 70.08. For comparison, its industry has an average Forward P/E of 20.26, which means Dutch Bros is trading at a premium to the group.
It's also important to note that BROS currently trades at a PEG ratio of 2.14. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.14 as of yesterday's close.
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 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.
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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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