Dutch Bros (BROS) Dips More Than Broader Market: What You Should Know

In the latest close session, Dutch Bros (BROS) was down 6.45% at $48.02. The stock trailed the S&P 500, which registered a daily loss of 1.74%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.38%.

Heading into today, shares of the drive-thru coffee chain operator and franchisor had gained 0.94% over the past month, outpacing the Retail-Wholesale sector's loss of 3.4% and the S&P 500's loss of 4.99%.

The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. In that report, analysts expect Dutch Bros to post earnings of $0.15 per share. This would mark year-over-year growth of 7.14%. Meanwhile, the latest consensus estimate predicts the revenue to be $447.17 million, indicating a 25.91% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.9 per share and a revenue of $2.04 billion, representing changes of +18.42% and +24.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.43% higher within the past month. 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 56.95. This signifies a premium in comparison to the average Forward P/E of 19.3 for its industry.

Investors should also note that BROS has a PEG ratio of 1.68 right now. 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. BROS's industry had an average PEG ratio of 1.87 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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