Dutch Bros (BROS) Beats Stock Market Upswing: What Investors Need to Know

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Dutch Bros (BROS) ended the recent trading session at $32.30, demonstrating a +0.44% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.08%.

Shares of the drive-thru coffee chain operator and franchisor witnessed a gain of 4.35% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.59% and outperforming the S&P 500's gain of 1.21%.

Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company's upcoming EPS is projected at $0.11, signifying a 21.43% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $323.92 million, showing a 22.46% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.39 per share and revenue of $1.23 billion. These totals would mark changes of +30% and +26.97%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Dutch Bros is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 82.16. This expresses a premium compared to the average Forward P/E of 22.36 of its industry.

It is also worth noting that BROS currently has a PEG ratio of 2.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.15 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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