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Dutch Bros (BROS) Dips More Than Broader Markets: What You Should Know

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Dutch Bros (BROS) closed the most recent trading day at $37.38, moving -1.4% from the previous trading session. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the drive-thru coffee chain operator and franchisor had gained 13.78% over the past month, outpacing the Consumer Staples sector's gain of 3.72% and the S&P 500's gain of 2.02% in that time.

Wall Street will be looking for positivity from Dutch Bros as it approaches its next earnings report date.

BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.27 per share and revenue of $713.63 million. These results would represent year-over-year changes of -10% and +43.33%, respectively.

It is also important to note the recent changes to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dutch Bros is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Dutch Bros has a Forward P/E ratio of 143.06 right now. For comparison, its industry has an average Forward P/E of 21.66, which means Dutch Bros is trading at a premium to the group.

It is also worth noting that BROS currently has a PEG ratio of 4.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BROS's industry had an average PEG ratio of 2.7 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

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