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Two NYSE-Listed Stocks Gaining Popularity
1. Dutch Bros Inc. (NYSE: BROS)
Dutch Bros Inc. (NYSE: BROS) is an operator and franchiser of drive-thru shops, which is focused on serving hand-crafted beverages. The Company sells a range of customizable hot, iced and blended beverages. Coffee-based beverages include its espresso-based custom drinks, cold brew and its proprietary Freeze blended beverages.
Dutch Bros, a coffee company, has announced its Q1 2024 financial results, which were exceptional. The company saw system same shop sales growth reach 10.0%, the strongest single quarter since Q4 2021, and revenue grew significantly, reaching $275 million, a 39% YoY increase. The company's performance was driven by strong sales growth, excellent margin flow through, and the successful launch of new products. Additionally, 45 new shops opened, and the company revised its guidance for 2024, with total system shop openings expected to remain in the range of 150 to 165. Overall, Dutch Bros' CEO expressed confidence in the company's ability to continue delivering exceptional results despite a volatile economic backdrop.
Technical View: BROS' stock has undergone a significant consolidation phase in recent past, with the stock price showing resilience at its lower levels and marking higher lows on the weekly chart. Subsequently, the stock has breached the trendline resistance zone and made a higher high, indicating a possibility of an upside move in the near term. This change in behaviour suggests a substantial increase in buying pressure and investor confidence. The Relative Strength Index (RSI) remains in a positive zone, reinforcing the ongoing upward momentum. Additionally, the stock is currently trading above both the 21-day and 50-day Simple Moving Averages (SMAs), which could serve as a foundation for future price stability and potentially limit losses.
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