Dutch Brothers (BROS) ended the most recent trading day at $42.10, marking a +1.54% change from the previous day’s close. The stock outperformed the S&P 500’s daily gain of 0.09%, while the Dow gained 0.09% and the tech-heavy Nasdaq added 0.3%.
Shares of the drive-thru coffee chain operator and franchisor have risen 13.71% over the past month, outperforming the Consumer Staples sector’s 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 Brothers’ upcoming earnings report, as the company is expected to report EPS of $0.12, representing a decline of 7.69% compared to the same period last year. Meanwhile, our current consensus estimates are calling for revenues of $315.98 million, representing year-over-year growth of 26.45%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.36 per share and revenue of $1.22 billion, which would represent changes of +20% and +26.81%, respectively, from the prior year.
Investors should also pay attention to the latest changes to analyst forecasts for Dutch Brothers. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive forecast revisions reflect analysts’ optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with future stock price movements, and to take advantage of this, we have created the Zacks Rank, a proprietary model which synthesizes these estimate changes and provides a functioning rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, third-party-audited, track record of outperformance, with #1 rated stocks generating an average annual return of +25% since 1988. Within the past 30 days, the Zacks Consensus EPS estimate has moved 0.49% higher. Dutch Brothers is currently sporting a Zacks Rank #3 (Hold).
Investors should also note Dutch Brothers’ current valuation metrics, such as its Forward P/E ratio of 115.57. In comparison, its industry peers have an average Forward P/E of 18.89, meaning Dutch Brothers is trading at a premium to its peers.
Meanwhile, BROS’s PEG ratio is currently at 5.11. This metric is used similarly to the well-known P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Beverages – Soft Drinks industry was 2.74.
The Beverages – Soft Drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of #59, putting it in the top 24% of all 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, and 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 track these and other stock-moving indicators during the upcoming trading sessions.
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