Summary
Dutch Bros, a drive-thru coffee chain operator and franchisor, closed its latest trading session at $57.53, showing a -0.43% dip from the previous day's close. This decline surpasses the S&P 500's daily loss of 1.11%, as well as the Dow's 0.42% drop and Nasdaq's 1.89% loss. Although Dutch Bros has gained 8.51% over the past month, substantially outpacing the Retail-Wholesale sector's loss of 3.46% and the S&P 500's loss of 1.7%, market participants are still closely watching its upcoming earnings release for more insight.
Stock Price Movement
The latest trading session of Dutch Bros (BROS) ended at $57.53, denoting a -0.43% adjustment from its last day's close. This change was stronger than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost a more substantial 1.89%.
Prior to today's trading session, shares of Dutch Bros had gained 8.51% over the past month. This significant increase has outpaced both the Retail-Wholesale sector's loss of 3.46% and the S&P 500's loss of 1.7% in that time frame.
Market Participants' Interest in Earnings Release
Market participants will be closely following Dutch Bros' upcoming earnings release. The company's projected earnings per share (EPS) for this quarter are $0.02, reflecting a significant decrease of 50% from the same quarter last year. Alongside this, our latest consensus estimate anticipates Dutch Bros to generate revenue of $319.28 million in its upcoming financial period, showing a considerable increase of 25.64% compared to the corresponding period last year.
Recent Changes in Analyst Estimates for Dutch Bros
Investors may also take note of recent alterations to analyst estimates for Dutch Bros. These adjustments typically reflect short-term business trends and can change frequently. It's worth noting that positive estimate revisions are generally interpreted as a favorable sign for the company's future performance.
The Importance of Estimate Changes in Predicting Stock Price Performance
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. By understanding this correlation, we have developed the Zacks Rank, a proprietary model that incorporates these estimate changes to offer a practical rating system for investors.
Zacks System: A Proven Model for Predicting Stock Price Performance
The Zacks Rank system boasts an impressive track record of outperformance, with #1 ranked stocks yielding an average annual return of +25% since 1988. This external audit highlights the effectiveness of our model. Over the past month, the Zacks Consensus EPS estimate has shifted 4.04% upward, which suggests a positive outlook for Dutch Bros. As it stands now, Dutch Bros boasts a Zacks Rank of #2 (Buy), indicating that investors should consider purchasing this stock.
Stock Valuation: A Comprehensive Analysis
Digging into valuation, Dutch Bros currently possesses a Forward P/E ratio of 98.89. This indicates a premium compared to its industry's average Forward P/E of 23.35. Notably, Dutch Bros also features a PEG ratio of 2.81. The PEG ratio is similar to the widely-used P/E ratio but also considers the company's expected earnings growth rate. At present, the Retail - Restaurants industry bears an average PEG ratio of 2.03.
Industry Comparison: A Key Aspect in Valuation
It's essential for investors to understand that the Retail - Restaurants industry is part of a larger sector called Retail-Wholesale. This industry finds itself at the bottom 36% echelons of all industries, with an average PEG ratio significantly lower than Dutch Bros'. The Zacks Industry Rank evaluates specific group strength by computing the average Zacks Rank of individual stocks within those groups. Our research indicates that top-ranked industries outperform their bottom counterparts by a factor of 2 to 1.
Conclusion
Dutch Bros appears poised for an upward trajectory, with its estimated growth of earnings per share and revenue pointing toward increased business expansion. Despite facing some headwinds due to changes in analyst estimates and ongoing sector movements, Dutch Bros' Zacks Rank indicates it's poised to be on positive footing, providing opportunities for growth-oriented investors.
With so much at stake, harnessing the power of Zacks.com can ensure accuracy and up-to-the-minute data as market trends evolve.