Back to top

Image: Bigstock

Here's Why Dutch Bros (BROS) Fell More Than Broader Market

Read MoreHide Full Article

Dutch Bros (BROS - Free Report) closed at $57.95 in the latest trading session, marking a -2.34% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq lost 0.33%.

The drive-thru coffee chain operator and franchisor's stock has dropped by 7.02% in the past month, falling short of the Retail-Wholesale sector's gain of 2.91% and the S&P 500's gain of 2.57%.

Investors will be eagerly watching for the performance of Dutch Bros in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.17, signifying a 6.25% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $410.99 million, indicating a 21.52% growth compared to the corresponding quarter of the prior year.

BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.68 per share and revenue of $1.6 billion. These results would represent year-over-year changes of +38.78% and +25.04%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, there's been a 1.54% rise in the Zacks Consensus EPS estimate. Currently, Dutch Bros is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Dutch Bros is currently exchanging hands at a Forward P/E ratio of 87.69. For comparison, its industry has an average Forward P/E of 20.31, which means Dutch Bros is trading at a premium to the group.

It's also important to note that BROS currently trades at a PEG ratio of 2.88. 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. BROS's industry had an average PEG ratio of 2.31 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dutch Bros Inc. (BROS) - free report >>

Published in