Dutch Bros (BROS) Ascends But Remains Behind Market: Some Facts to Note

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Dutch Bros (BROS) ended the recent trading session at $31.77, demonstrating a +0.44% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.97%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.45%.

Coming into today, shares of the drive-thru coffee chain operator and franchisor had lost 2.26% in the past month. In that same time, the Retail-Wholesale sector gained 7.36%, while the S&P 500 gained 5.41%.

Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company's earnings per share (EPS) are projected to be $0.11, reflecting a 21.43% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $323.92 million, indicating a 22.46% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.39 per share and revenue of $1.23 billion, indicating changes of +30% and +26.97%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Dutch Bros is holding a Forward P/E ratio of 80.81. This represents a premium compared to its industry's average Forward P/E of 22.13.

It's also important to note that BROS currently trades at a PEG ratio of 2.13. 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 the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.11.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 33% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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