Dave & Buster's (PLAY) Stock Sinks As Market Gains: Here's Why
Dave & Buster's (PLAY) closed at $58.31 in the latest trading session, marking a -0.38% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.96%. On the other hand, the Dow registered a gain of 0.4%, and the technology-centric Nasdaq increased by 1.3%.
The owner of Dave & Buster's, a chain of restaurants and arcades's stock has climbed by 18.87% in the past month, exceeding the Retail-Wholesale sector's gain of 4.23% and the S&P 500's gain of 3.69%.
The investment community will be closely monitoring the performance of Dave & Buster's in its forthcoming earnings report. The company is forecasted to report an EPS of $1.14, showcasing a 42.5% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $610.21 million, showing an 8.24% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Dave & Buster's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 a 1.95% rise in the Zacks Consensus EPS estimate. As of now, Dave & Buster's holds a Zacks Rank of #2 (Buy).
Looking at valuation, Dave & Buster's is presently trading at a Forward P/E ratio of 14.26. Its industry sports an average Forward P/E of 20.75, so one might conclude that Dave & Buster's is trading at a discount comparatively.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PLAY in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
