In the latest trading session, Dutch Bros (BROS) closed at $43.44, marking a -3.38% move from the previous day. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 0.65%.
Coming into today, shares of the drive-thru coffee chain operator and franchisor had lost 11.88% in the past month. In that same time, the Retail-Wholesale sector lost 8.48%, while the S&P 500 lost 1.37%.
The upcoming earnings release of Dutch Bros will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.23, reflecting a 21.05% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $551.71 million, up 30.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.97 per share and a revenue of $2.14 billion, signifying shifts of +27.63% and +30.59%, respectively, from the last year.
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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained stagnant. At present, Dutch Bros boasts a Zacks Rank of #3 (Hold).
Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 46.24. This represents a premium compared to its industry average Forward P/E of 21.35.
We can additionally observe that BROS currently boasts a PEG ratio of 1.44. 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 industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 157, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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Dutch Bros Inc. (BROS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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