Back to top

Image: Bigstock

Is Dutch Bros (BROS) Stock Outpacing Its Retail-Wholesale Peers This Year?

Read MoreHide Full Article

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Dutch Bros (BROS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Dutch Bros is one of 187 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Dutch Bros is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BROS' full-year earnings has moved 3.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, BROS has moved about 6.1% on a year-to-date basis. At the same time, Retail-Wholesale stocks have lost an average of 0.1%. This means that Dutch Bros is performing better than its sector in terms of year-to-date returns.

Williams-Sonoma (WSM - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.5%.

Over the past three months, Williams-Sonoma's consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Dutch Bros is a member of the Retail - Restaurants industry, which includes 36 individual companies and currently sits at #209 in the Zacks Industry Rank. On average, stocks in this group have lost 1.5% this year, meaning that BROS is performing better in terms of year-to-date returns.

Williams-Sonoma, however, belongs to the Retail - Home Furnishings industry. Currently, this 10-stock industry is ranked #80. The industry has moved -6.1% so far this year.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Dutch Bros and Williams-Sonoma as they attempt to continue their solid performance.

Published in