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

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In the latest trading session, Dutch Bros (BROS - Free Report) closed at $36.24, marking a -1.49% move from the previous day. This change lagged the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Heading into today, shares of the drive-thru coffee chain operator and franchisor had lost 0.22% over the past month, lagging the Consumer Staples sector's gain of 2.74% and the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Dutch Bros as it approaches its next earnings report date.

BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.27 per share and revenue of $713.63 million. These results would represent year-over-year changes of -10% and +43.33%, respectively.

Investors should also note any recent changes to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Dutch Bros currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Dutch Bros is holding a Forward P/E ratio of 137.53. For comparison, its industry has an average Forward P/E of 21.54, which means Dutch Bros is trading at a premium to the group.

Meanwhile, BROS's PEG ratio is currently 4.09. 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 Beverages - Soft drinks industry currently had an average PEG ratio of 2.65 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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