Dave & Buster's (PLAY) Stock Declines While Market Improves: Some Information for Investors
Dave & Buster's (PLAY) closed the latest trading day at $39.65, indicating a -0.7% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.1%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.29%.
Coming into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had gained 15.17% in the past month. In that same time, the Retail-Wholesale sector gained 9.88%, while the S&P 500 gained 10.68%.
The investment community will be closely monitoring the performance of Dave & Buster's in its forthcoming earnings report. The company is scheduled to release its earnings on December 5, 2023. The company is expected to report EPS of -$0.19, down 575% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $472.86 million, down 1.74% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $2.23 billion, which would represent changes of +2.15% and +13.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dave & Buster's. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Dave & Buster's holds a Zacks Rank of #3 (Hold).
In terms of valuation, Dave & Buster's is currently trading at a Forward P/E ratio of 13.99. This expresses a discount compared to the average Forward P/E of 20.5 of its industry.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 16% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
