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Dutch Bros (BROS) closed the latest trading day at $59.59, indicating a +0.42% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.03%.
Shares of the drive-thru coffee chain operator and franchisor have appreciated by 12.92% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.85% and the S&P 500's gain of 0.81%.
Investors will be eagerly watching for the performance of Dutch Bros in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.02, reflecting a 50% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $319.09 million, up 25.57% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates 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 company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Dutch Bros is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 101.81. For comparison, its industry has an average Forward P/E of 24.11, which means Dutch Bros is trading at a premium to the group.
It is also worth noting that BROS currently has a PEG ratio of 2.9. 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. The Retail - Restaurants industry had an average PEG ratio of 2.11 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.