Dave & Buster's (PLAY) Outpaces Stock Market Gains: What You Should Know
Dave & Buster's (PLAY) closed at $46.32 in the latest trading session, marking a +1.96% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 7.84%.
Heading into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had gained 8.01% over the past month, outpacing the Retail-Wholesale sector's gain of 3.43% and the S&P 500's gain of 3.39% in that time.
Dave & Buster's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.93, up 52.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $558.16 million, up 19.17% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.58 per share and revenue of $2.3 billion. These totals would mark changes of +28.32% and +16.93%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.24% higher. Dave & Buster's is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Dave & Buster's currently has a Forward P/E ratio of 12.7. This valuation marks a discount compared to its industry's average Forward P/E of 24.85.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
