Dave & Buster's (PLAY) Dips More Than Broader Markets: What You Should Know
Dave & Buster's (PLAY) closed at $41.57 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 1.17%.
Coming into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had lost 5.68% in the past month. In that same time, the Retail-Wholesale sector gained 5.69%, while the S&P 500 gained 2.35%.
Wall Street will be looking for positivity from Dave & Buster's as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $558.09 million, up 19.16% from the year-ago period.
PLAY's full-year Zacks Consensus Estimates are calling for earnings of $3.60 per share and revenue of $2.3 billion. These results would represent year-over-year changes of +29.03% and +16.95%, respectively.
Any recent changes to analyst estimates for Dave & Buster's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 #1 (Strong Buy).
In terms of valuation, Dave & Buster's is currently trading at a Forward P/E ratio of 11.77. This represents a discount compared to its industry's average Forward P/E of 23.26.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
