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Earnings Estimates Moving Higher for Dutch Bros (BROS): Time to Buy?
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Dutch Bros (BROS - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this drive-thru coffee chain operator and franchisor is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Dutch Bros, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
The company is expected to earn $0.03 per share for the current quarter, which represents a year-over-year change of 0%.
Over the last 30 days, the Zacks Consensus Estimate for Dutch Bros has increased 19.82% because four estimates have moved higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $0.28 per share for the full year, which represents a change of +75% from the prior-year number.
The revisions trend for the current year also appears quite promising for Dutch Bros, with six estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 276.47%.
Favorable Zacks Rank
The promising estimate revisions have helped Dutch Bros earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Dutch Bros because of its solid estimate revisions, as evident from the stock's 16.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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Earnings Estimates Moving Higher for Dutch Bros (BROS): Time to Buy?
Dutch Bros (BROS - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this drive-thru coffee chain operator and franchisor is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Dutch Bros, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
The company is expected to earn $0.03 per share for the current quarter, which represents a year-over-year change of 0%.
Over the last 30 days, the Zacks Consensus Estimate for Dutch Bros has increased 19.82% because four estimates have moved higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $0.28 per share for the full year, which represents a change of +75% from the prior-year number.
The revisions trend for the current year also appears quite promising for Dutch Bros, with six estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 276.47%.
Favorable Zacks Rank
The promising estimate revisions have helped Dutch Bros earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Dutch Bros because of its solid estimate revisions, as evident from the stock's 16.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.