Dutch Bros (BROS) ended the recent trading session at $66.25, demonstrating a -3.09% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Shares of the drive-thru coffee chain operator and franchisor witnessed a loss of 3.34% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.41%, and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 11.54% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $522.89 million, showing a 25.75% escalation compared to the year-ago quarter.
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 +26.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. Dutch Bros is currently a Zacks Rank #2 (Buy).
With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 73.33. This represents a premium compared to its industry average Forward P/E of 20.71.
Investors should also note that BROS has a PEG ratio of 1.99 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow BROS in the coming trading sessions, be sure to utilize Zacks.com.
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Dutch Bros Inc. (BROS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).