Here's Why Dutch Bros (BROS) Fell More Than Broader Market

Dutch Bros (BROS) closed at $57.95 in the latest trading session, marking a -2.34% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq lost 0.33%. The drive-thru coffee chain operator and franchisor's stock has dropped by 7.02% in the past month, falling short of the Retail-Wholesale sector's gain of 2.91% and the S&P 500's gain of 2.57%.Investors will be eagerly watching for the performance of Dutch Bros in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.17, signifying a 6.25% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $410.99 million, indicating a 21.52% growth compared to the corresponding quarter of the prior year. BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.68 per share and revenue of $1.6 billion. These results would represent year-over-year changes of +38.78% and +25.04%, respectively. Investors should also take note of any recent adjustments to analyst estimates for Dutch Bros. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. 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 a 1.54% rise in the Zacks Consensus EPS estimate. Currently, Dutch Bros is carrying a Zacks Rank of #2 (Buy). From a valuation perspective, Dutch Bros is currently exchanging hands at a Forward P/E ratio of 87.69. For comparison, its industry has an average Forward P/E of 20.31, which means Dutch Bros is trading at a premium to the group. It's also important to note that BROS currently trades at a PEG ratio of 2.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BROS's industry had an average PEG ratio of 2.31 as of yesterday's close. The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 26% 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. 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 >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks