Yahoo Finance Why Dutch Bros (BROS) Outpaced the Stock Market Today
Dutch Bros (BROS) closed the latest trading day at $42.10, indicating a +1.54% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.09%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.3%.
Shares of the drive-thru coffee chain operator and franchisor witnessed a gain of 13.71% over the previous month, beating the performance of the Consumer Staples sector with its loss of 1.31% and the S&P 500's gain of 3.38%.
The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. The company is forecasted to report an EPS of $0.12, showcasing a 7.69% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $315.98 million, indicating a 26.45% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.36 per share and a revenue of $1.22 billion, demonstrating changes of +20% and +26.81%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. At present, Dutch Bros boasts a Zacks Rank of #3 (Hold).
Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 115.57. For comparison, its industry has an average Forward P/E of 18.89, which means Dutch Bros is trading at a premium to the group.
Meanwhile, BROS's PEG ratio is currently 5.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.74.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
