Dutch Bros (BROS) closed the most recent trading day at $52.86, moving -5.4% from the previous trading session. This change lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.23%.
The drive-thru coffee chain operator and franchisor's stock has climbed by 18.14% in the past month, exceeding the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 0.63%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company is predicted to post an EPS of $0.15, indicating a 7.14% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $446.65 million, indicating a 25.76% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.9 per share and a revenue of $2.04 billion, demonstrating changes of +18.42% and +24.46%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 moved 0.13% lower. Currently, Dutch Bros is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Dutch Bros is currently exchanging hands at a Forward P/E ratio of 62.32. Its industry sports an average Forward P/E of 19.29, so one might conclude that Dutch Bros is trading at a premium comparatively.
We can additionally observe that BROS currently boasts a PEG ratio of 1.84. 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 1.89 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 22% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Dutch Bros Inc. (BROS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).