Dutch Bros Inc. (BROS) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Dutch Bros (BROS)? Shares have been on the move with the stock up 4.3% over the past month. The stock hit a new 52-week high of $56.41 in the previous session. Dutch Bros has gained 7.5% since the start of the year compared to the 28.2% move for the Zacks Retail-Wholesale sector and the 5.2% return for the Zacks Retail - Restaurants industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2024, Dutch Bros reported EPS of $0.16 versus consensus estimate of $0.12 while it beat the consensus revenue estimate by 4.24%.For the current fiscal year, Dutch Bros is expected to post earnings of $0.58 per share on $1.26 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.78 per share on $1.53 billion in revenues. This represents a year-over-year change of 29.21% and 21.67%, respectively.Valuation MetricsDutch Bros may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Dutch Bros has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 96.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.3X. On a trailing cash flow basis, the stock currently trades at 124.5X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 2.74. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Dutch Bros currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Dutch Bros fits the bill. Thus, it seems as though Dutch Bros shares could have a bit more room to run in the near term.How Does BROS Stack Up to the Competition?Shares of BROS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Brinker International, Inc. (EAT). EAT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Brinker International, Inc. beat our consensus estimate by 37.68%, and for the current fiscal year, EAT is expected to post earnings of $5.91 per share on revenue of $4.83 billion.Shares of Brinker International, Inc. have gained 5.3% over the past month, and currently trade at a forward P/E of 23.31X and a P/CF of 17.09X.The Retail - Restaurants industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BROS and EAT, even beyond their own solid fundamental situation.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Brinker International, Inc. (EAT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks