Dutch Bros (BROS) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, Dutch Bros (BROS) closed at $66.05, marking a -1.56% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.48%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.94%.

Shares of the drive-thru coffee chain operator and franchisor have depreciated by 5.23% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.33%, and the S&P 500's gain of 5.13%.

Invest in Gold

Thor Metals Group: Best Overall Gold IRA

American Hartford Gold: #1 Precious Metals Dealer in the Nation

Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase

Analysts and investors alike will be keeping a close eye on the performance of Dutch Bros in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.18, reflecting a 5.26% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $401.06 million, indicating a 23.43% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $1.58 billion. These totals would mark changes of +20.41% and +23.35%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.52% lower. As of now, Dutch Bros holds a Zacks Rank of #3 (Hold).

Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 112.91. This signifies a premium in comparison to the average Forward P/E of 22.63 for its industry.

Investors should also note that BROS has a PEG ratio of 3.49 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dutch Bros Inc. (BROS) : Free Stock Analysis Report

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

Zacks Investment Research