Dutch Bros (BROS) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest close session, Dutch Bros (BROS) was down 1.59% at $67.46. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.

Prior to today's trading, shares of the drive-thru coffee chain operator and franchisor had lost 3.03% lagged the Retail-Wholesale sector's gain of 1.59% and the S&P 500's gain of 5.12%.

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Investors will be eagerly watching for 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. Meanwhile, the latest consensus estimate predicts the revenue to be $401.73 million, indicating a 23.64% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.61 per share and revenue of $1.58 billion. These totals would mark changes of +24.49% and +23.4%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, there's been no change in the Zacks Consensus EPS estimate. Currently, Dutch Bros is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 113.17. Its industry sports an average Forward P/E of 22.5, so one might conclude that Dutch Bros is trading at a premium comparatively.

We can also see that BROS currently has a PEG ratio of 3.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.58.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

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