Dutch Bros (BROS) ended the recent trading session at $68.14, demonstrating a -4.57% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
Heading into today, shares of the drive-thru coffee chain operator and franchisor had lost 0.32% over the past month, outpacing the Retail-Wholesale sector's loss of 1.63% and lagging the S&P 500's gain of 3.55%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. In that report, analysts expect Dutch Bros to post earnings of $0.18 per share. This would mark a year-over-year decline of 5.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $402.26 million, up 23.8% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.61 per share and revenue of $1.58 billion, indicating changes of +24.49% and +23.53%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate remained stagnant. Dutch Bros is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Dutch Bros is holding a Forward P/E ratio of 117.88. For comparison, its industry has an average Forward P/E of 23.4, which means Dutch Bros is trading at a premium to the group.
Also, we should mention that BROS has a PEG ratio of 3.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. BROS's industry had an average PEG ratio of 2.51 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 29% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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