In the latest trading session, Dutch Bros (BROS) closed at $61.94, marking a -0.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.31%.

The drive-thru coffee chain operator and franchisor's stock has dropped by 23.78% in the past month, falling short of the Retail-Wholesale sector's loss of 11.57% and the S&P 500's loss of 7.69%.

The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. The company's upcoming EPS is projected at $0.12, signifying a 33.33% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $341.56 million, up 24.16% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.62 per share and revenue of $1.58 billion. These totals would mark changes of +26.53% and +23.37%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% increase. At present, Dutch Bros boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 101.01. This expresses a premium compared to the average Forward P/E of 22.82 of its industry.

It's also important to note that BROS currently trades at a PEG ratio of 2.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.07.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 127, finds itself in the top 50% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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