Dave & Buster's (PLAY) Dips More Than Broader Markets: What You Should Know
Dave & Buster's (PLAY) closed at $40.66 in the latest trading session, marking a -1.53% move from the prior day. This change lagged the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 1.02%, and the Nasdaq, a tech-heavy index, lost 1.14%.
Prior to today's trading, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had lost 6.73% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.34% and the S&P 500's loss of 0.27% in that time.
Dave & Buster's will be looking to display strength as it nears its next earnings release. On that day, Dave & Buster's is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 52.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $558.09 million, up 19.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.60 per share and revenue of $2.3 billion. These totals would mark changes of +29.03% and +16.95%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Dave & Buster's. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.61% higher within the past month. Dave & Buster's is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Dave & Buster's currently has a Forward P/E ratio of 11.48. This valuation marks a discount compared to its industry's average Forward P/E of 23.13.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
