The latest trading session saw Dutch Bros (BROS) ending at $57.53, denoting a -0.43% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Prior to today's trading, shares of the drive-thru coffee chain operator and franchisor had gained 8.51% over the past month. This has outpaced the Retail-Wholesale sector's loss of 3.46% and the S&P 500's loss of 1.7% in that time.
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 $0.02, reflecting a 50% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $319.28 million, showing a 25.64% escalation compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 4.04% upward. At present, Dutch Bros boasts a Zacks Rank of #2 (Buy).
Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 98.89. This represents a premium compared to its industry's average Forward P/E of 23.35.
Also, we should mention that BROS has a PEG ratio of 2.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.03.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 36% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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