Dutch Bros (BROS) ended the recent trading session at $65.35, demonstrating a +2.33% change from the preceding day's closing price. This change outpaced the S&P 500's 0.51% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The drive-thru coffee chain operator and franchisor's stock has dropped by 2.83% in the past month, falling short of the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. On that day, Dutch Bros is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 11.54%. At the same time, our most recent consensus estimate is projecting a revenue of $522.66 million, reflecting a 25.7% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.93 per share and a revenue of $2.08 billion, representing changes of +22.37% and +26.85%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.9% upward. Currently, Dutch Bros is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Dutch Bros is presently being traded at a Forward P/E ratio of 68.58. This signifies a premium in comparison to the average Forward P/E of 20.14 for its industry.
Meanwhile, BROS's PEG ratio is currently 1.86. 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. BROS's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 27% 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).