Dutch Bros (BROS) Outpaces Stock Market Gains: What You Should Know

Zacks
01-24

In the latest trading session, Dutch Bros (BROS) closed at $60.91, marking a +1.16% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.22%.

Shares of the drive-thru coffee chain operator and franchisor have appreciated by 9.85% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 2.69%.

The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. It is anticipated that the company will report an EPS of $0.02, marking a 50% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $318.96 million, indicating a 25.52% upward movement from the same quarter last year.

Investors should also note any recent changes to analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.32% fall in the Zacks Consensus EPS estimate. Right now, Dutch Bros possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Dutch Bros is presently trading at a Forward P/E ratio of 103.3. Its industry sports an average Forward P/E of 23.24, 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 2.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.02.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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