In the latest trading session, Dutch Bros (BROS – Free Report) closed at $55.82, marking a +1.84% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.04%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.05%.
The the stock of drive-thru coffee chain operator and franchisor has risen by 3.12% in the past month, leading the Retail-Wholesale sector’s gain of 2.87% and the S&P 500’s gain of 1.05%.
Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. The company is expected to report EPS of $0.02, down 50% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $319.28 million, showing a 25.64% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.45 per share and a revenue of $1.26 billion, representing changes of +50% and +30.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dutch Bros. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.29% higher. At present, Dutch Bros boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Dutch Bros is at present trading with a Forward P/E ratio of 121.03. This expresses a premium compared to the average Forward P/E of 25.02 of its industry.
Also, we should mention that BROS has a PEG ratio of 3.44. 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. The Retail – Restaurants industry currently had an average PEG ratio of 2.3 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% 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.
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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