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Dutch Bros (BROS) Stock Falls Amid Market Uptick: What Investors Need to Know

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Dutch Bros (BROS - Free Report) closed the most recent trading day at $51.53, moving -1.55% from the previous trading session. This move lagged the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.

The drive-thru coffee chain operator and franchisor's stock has dropped by 28.28% in the past month, falling short of the Retail-Wholesale sector's gain of 0.41% and the S&P 500's gain of 3.54%.

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 $0.17, up 6.25% from the prior-year quarter. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.68 per share and a revenue of $1.6 billion, indicating changes of +38.78% and +25.04%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.54% higher. Right now, Dutch Bros possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Dutch Bros is at present trading with a Forward P/E ratio of 77.35. This denotes a premium relative to the industry average Forward P/E of 23.52.

Also, we should mention that BROS has a PEG ratio of 2.54. 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 2.35 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 197, this industry ranks in the bottom 21% 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.

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


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