Dutch Bros Faces Investor Scrutiny Ahead of Earnings Report
The latest trading session concluded with Dutch Bros (BROS) priced at $34.20, marking a slight decline of -0.12% from the previous day’s close. This performance was notably worse than the S&P 500’s drop of 0.76%. The Dow also fell by 0.75%, while the Nasdaq experienced a loss of 1.01%.
Monthly Trends and Sector Comparison
Over the past month, shares of drive-thru coffee chain Dutch Bros have increased by 0.85%. However, this still lags behind the Retail-Wholesale sector’s gain of 3.42% and the S&P 500’s increase of 4.31%.
Upcoming Earnings Insights
All eyes are on Dutch Bros as it prepares to release its upcoming earnings report. Analysts forecast earnings of $0.11 per share, which is a decrease of 21.43% year-over-year. Meanwhile, revenue estimates stand at $323.92 million, reflecting a 22.46% increase compared to the same quarter last year.
Annual Performance Predictions
The full-year Zacks Consensus Estimates predict earnings of $0.39 per share and revenue of $1.23 billion for Dutch Bros. If achieved, these figures would indicate year-over-year increases of 30% in earnings and 26.97% in revenue.
Analyst Estimates and Stock Performance
Investors should stay informed about any recent changes in analysts’ estimates for Dutch Bros, as these revisions often hint at shifting business trends. Positive adjustments can indicate growing confidence in the company’s future performance.
Tracking Analyst Ratings
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has proven effective in predicting stock performance. Historically, #1 stocks have returned an average annual gain of +25% since 1988. Recently, the Zacks Consensus EPS estimate for Dutch Bros has risen by 1.04%, placing it at a Zacks Rank of #3 (Hold).
Evaluating Dutch Bros Stock Valuation
Valuation metrics are key for investors. Currently, Dutch Bros has a Forward P/E ratio of 86.84, compared to the industry average of 21.78, indicating that BROS is valued at a premium within its sector.
Additionally, the company has a PEG ratio of 2.29, which accounts for expected earnings growth. In contrast, the average PEG ratio for the Retail – Restaurants industry stands at 2.12.
Industry Ranking and Performance Analysis
The Retail – Restaurants industry, part of the broader Retail-Wholesale sector, currently holds a Zacks Industry Rank of 147, placing it in the bottom 42% among over 250 industries. This ranking reflects the overall strength of the industry, indicating that companies in the top half typically outperform those in the bottom half by a factor of two to one.
For ongoing updates on stock movements and metrics, visit Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
