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Dutch Bros (BROS) Increases Yet Falls Behind Market: What Investors Need to Know

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Dutch Bros (BROS - Free Report) ended the recent trading session at $42.46, demonstrating a +0.35% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.

Shares of the drive-thru coffee chain operator and franchisor witnessed a gain of 7.6% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 2.58% and the S&P 500's gain of 3.82%.

Investors will be eagerly watching for the performance of Dutch Bros in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 7.69% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $315.98 million, up 26.45% from the prior-year quarter.

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.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dutch Bros is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 117.94. This represents a premium compared to its industry's average Forward P/E of 18.8.

It is also worth noting that BROS currently has a PEG ratio of 5.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 1.85 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 42% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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