Dutch Bros (BROS) Stock Declines While Market Improves: Some Information for Investors

Zacks
01-16

Dutch Bros (BROS) closed the most recent trading day at $58.89, moving -0.32% from the previous trading session. This change lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.

Heading into today, shares of the drive-thru coffee chain operator and franchisor had gained 11.56% over the past month, outpacing the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. In that report, analysts expect Dutch Bros to post earnings of $0.02 per share. This would mark a year-over-year decline of 50%. Our most recent consensus estimate is calling for quarterly revenue of $319.28 million, up 25.64% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.04% increase. At present, Dutch Bros boasts a Zacks Rank of #2 (Buy).

With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 101.11. Its industry sports an average Forward P/E of 22.59, so one might conclude that Dutch Bros is trading at a premium comparatively.

We can additionally observe that BROS currently boasts a PEG ratio of 2.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.99.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% 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.

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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