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

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Dutch Bros (BROS - Free Report) ended the recent trading session at $39.06, demonstrating a +1.48% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.18%.

Heading into today, shares of the drive-thru coffee chain operator and franchisor had gained 12.35% over the past month, outpacing the Consumer Staples sector's loss of 3.04% and the S&P 500's gain of 3.15% in that time.

The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. On that day, Dutch Bros is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 7.69%. At the same time, our most recent consensus estimate is projecting a revenue of $315.98 million, reflecting a 26.45% rise from the equivalent quarter last year.

BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $1.22 billion. These results would represent year-over-year changes of +20% and +26.81%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has shifted 0.49% upward. Currently, Dutch Bros is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 107.29. This signifies a premium in comparison to the average Forward P/E of 18.84 for its industry.

It is also worth noting that BROS currently has a PEG ratio of 4.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.72.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 23% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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