Dave & Buster's (PLAY) Stock Drops Despite Market Gains: Important Facts to Note
Dave & Buster's (PLAY) closed the latest trading day at $36, indicating a -0.96% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.3%.
Shares of the owner of Dave & Buster's, a chain of restaurants and arcades have appreciated by 3.98% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.64% and outperforming the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Dave & Buster's in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.19, reflecting a 575% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $473.55 million, indicating a 1.59% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.85 per share and revenue of $2.24 billion, indicating changes of +2.15% and +13.85%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dave & Buster's. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dave & Buster's is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Dave & Buster's is currently being traded at a Forward P/E ratio of 12.74. This signifies a discount in comparison to the average Forward P/E of 19.56 for its industry.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
