Dutch Bros (BROS) Increases Yet Falls Behind Market: What Investors Need to Know
Dutch Bros (BROS) ended the recent trading session at $34.01, demonstrating a +0.09% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.54% for the day. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.65%.
The drive-thru coffee chain operator and franchisor's stock has climbed by 5.14% in the past month, falling short of the Retail-Wholesale sector's gain of 9.25% and outpacing the S&P 500's gain of 4.86%.
The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. In that report, analysts expect Dutch Bros to post earnings of $0.11 per share. This would mark a year-over-year decline of 21.43%. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.39 per share and a revenue of $1.23 billion, representing changes of +30% and +26.97%, respectively, from the prior year.
Any recent changes to analyst estimates for Dutch Bros should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Dutch Bros is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dutch Bros has a Forward P/E ratio of 86.81 right now. This represents a premium compared to its industry's average Forward P/E of 20.49.
Also, we should mention that BROS has a PEG ratio of 2.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Dutch Bros Inc. (BROS) : Free Stock Analysis Report