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Dutch Bros (BROS) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Dutch Bros (BROS - Free Report) closed at $47.66, marking a -2.79% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.67%.

Coming into today, shares of the drive-thru coffee chain operator and franchisor had lost 23.75% in the past month. In that same time, the Retail-Wholesale sector lost 2.39%, while the S&P 500 gained 4.06%.

The upcoming earnings release of Dutch Bros will be of great interest to investors. In that report, analysts expect Dutch Bros to post earnings of $0.17 per share. This would mark year-over-year growth of 6.25%. Our most recent consensus estimate is calling for quarterly revenue of $410.99 million, up 21.52% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.68 per share and revenue of $1.6 billion, which would represent changes of +38.78% and +25.04%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Dutch Bros possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dutch Bros has a Forward P/E ratio of 72.46 right now. Its industry sports an average Forward P/E of 22.92, so one might conclude that Dutch Bros is trading at a premium comparatively.

We can also see that BROS currently has a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.29.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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