Dutch Bros (BROS) closed at $67.61 in the latest trading session, marking a -3.18% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.51%.
The drive-thru coffee chain operator and franchisor's shares have seen an increase of 2% over the last month, surpassing the Retail-Wholesale sector's loss of 0.39% and the S&P 500's gain of 0.45%.
The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. The company's upcoming EPS is projected at $0.18, signifying a 5.26% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $401.73 million, up 23.64% 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 +23.4%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Dutch Bros is holding a Forward P/E ratio of 115.29. Its industry sports an average Forward P/E of 22.85, so one might conclude that Dutch Bros is trading at a premium comparatively.
We can also see that BROS currently has a PEG ratio of 3.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 2.57 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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