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Dutch Bros (BROS) Gains But Lags Market: What You Should Know

·3-min read

Dutch Bros (BROS) closed the most recent trading day at $36.87, moving +1.63% from the previous trading session. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the drive-thru coffee chain operator and franchisor had gained 1.57% over the past month. This has outpaced the Consumer Staples sector's loss of 1.3% and the S&P 500's loss of 4.31% in that time.

Investors will be hoping for strength from Dutch Bros as it approaches its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $713.63 million. These totals would mark changes of -30% and +43.33%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dutch Bros currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Dutch Bros currently has a Forward P/E ratio of 176.12. This valuation marks a premium compared to its industry's average Forward P/E of 20.82.

Also, we should mention that BROS has a PEG ratio of 5.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.81 based on yesterday's closing prices.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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