Dave & Buster's (PLAY) Dips More Than Broader Markets: What You Should Know
Dave & Buster's (PLAY) closed at $45.76 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had gained 4.61% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.93% and lagged the S&P 500's gain of 5.14% in that time.
Investors will be hoping for strength from Dave & Buster's as it approaches its next earnings release. In that report, analysts expect Dave & Buster's to post earnings of $0.93 per share. This would mark 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 typically reflect the latest short-term business trends, which can change frequently. 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. 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 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, the Zacks Consensus EPS estimate has moved 0.98% higher. Dave & Buster's is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Dave & Buster's has a Forward P/E ratio of 12.75 right now. Its industry sports an average Forward P/E of 23.91, so we one might conclude that Dave & Buster's is trading at a discount comparatively.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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
