Dave & Buster's (PLAY) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Dave & Buster's (PLAY) closed at $61.30, marking a -1.89% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.12% for the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.41%.
Coming into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had gained 13.21% in the past month. In that same time, the Retail-Wholesale sector gained 1.32%, while the S&P 500 gained 4.83%.
Analysts and investors alike will be keeping a close eye on the performance of Dave & Buster's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.10, signifying a 37.5% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $607.62 million, up 7.78% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dave & Buster's. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.45% rise in the Zacks Consensus EPS estimate. Currently, Dave & Buster's is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Dave & Buster's is presently being traded at a Forward P/E ratio of 15.26. This expresses a discount compared to the average Forward P/E of 21.25 of its industry.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
