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Dutch Bros (BROS) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Dutch Bros (BROS - Free Report) closed at $38.23, marking a -1.14% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.66% for the day. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.

The drive-thru coffee chain operator and franchisor's shares have seen a decrease of 16.98% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.61% and the S&P 500's gain of 0.55%.

Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company's upcoming EPS is projected at $0.24, signifying a 26.32% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $550.38 million, reflecting a 29.94% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.98 per share and revenue of $2.14 billion, which would represent changes of +28.95% and +30.44%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.86% upward. Dutch Bros is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Dutch Bros is holding a Forward P/E ratio of 39.5. Its industry sports an average Forward P/E of 18.58, so one might conclude that Dutch Bros is trading at a premium comparatively.

Investors should also note that BROS has a PEG ratio of 1.23 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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