Yahoo Finance Here's Why Dutch Bros (BROS) Fell More Than Broader Market
The most recent trading session ended with Dutch Bros (BROS) standing at $41.40, reflecting a -1.66% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.71%.
Coming into today, shares of the drive-thru coffee chain operator and franchisor had gained 17.99% in the past month. In that same time, the Retail-Wholesale sector gained 2.65%, while the S&P 500 gained 3.53%.
Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 7.69% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $315.98 million, up 26.45% from the year-ago period.
BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $1.22 billion. These results would represent year-over-year changes of +20% and +26.81%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. As of now, Dutch Bros holds a Zacks Rank of #3 (Hold).
Looking at valuation, Dutch Bros is presently trading at a Forward P/E ratio of 117.35. This denotes a premium relative to the industry's average Forward P/E of 20.02.
Meanwhile, BROS's PEG ratio is currently 5.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BROS's industry had an average PEG ratio of 1.78 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 162, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Dutch Bros Inc. (BROS): Free Stock Analysis Report
