Dutch Bros (BROS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest trading session, Dutch Bros (BROS) closed at $67.03, marking a -5.22% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%. The drive-thru coffee chain operator and franchisor's stock has climbed by 35.69% in the past month, exceeding the Retail-Wholesale sector's loss of 4.65% and the S&P 500's gain of 2.02%.The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. The company is expected to report EPS of $0.29, up 11.54% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $522.5 million, showing a 25.66% escalation compared to the year-ago quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.93 per share and a revenue of $2.08 billion, representing changes of +22.37% and +26.94%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Dutch Bros is holding a Zacks Rank of #3 (Hold) right now. In terms of valuation, Dutch Bros is currently trading at a Forward P/E ratio of 76.13. This expresses a premium compared to the average Forward P/E of 19.16 of its industry. Meanwhile, BROS's PEG ratio is currently 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.91 as of yesterday's close. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 16% 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks