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Dutch Bros (BROS) closed the latest trading day at $59.70, indicating a -1.27% change from the previous session's end. This change lagged the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.
The drive-thru coffee chain operator and franchisor's shares have seen an increase of 15.58% over the last month, surpassing the Retail-Wholesale sector's loss of 3.58% and the S&P 500's loss of 2.14%.
Analysts and investors alike will be keeping a close eye on 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. Meanwhile, the latest consensus estimate predicts the revenue to be $319.28 million, indicating a 25.64% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Dutch Bros. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 4.04% higher within the past month. Dutch Bros is currently a Zacks Rank #2 (Buy).
In terms of valuation, Dutch Bros is presently being traded at a Forward P/E ratio of 103.49. Its industry sports an average Forward P/E of 22.44, so one might conclude that Dutch Bros is trading at a premium comparatively.
Investors should also note that BROS has a PEG ratio of 2.94 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 26% of all industries, numbering over 250.
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.