Dave & Buster's (PLAY) Outpaces Stock Market Gains: What You Should Know

Dave & Buster's (PLAY) closed the most recent trading day at $40.13, moving +1.85% from the previous trading session. This change outpaced the S&P 500's 0.25% gain on the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.54%.

Heading into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had lost 7.79% over the past month, outpacing the Retail-Wholesale sector's loss of 16.19% and the S&P 500's loss of 11.03% in that time.

Dave & Buster's will be looking to display strength as it nears its next earnings release. On that day, Dave & Buster's is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 197.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $440.06 million, up 65.85% from the year-ago period.

PLAY's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $1.66 billion. These results would represent year-over-year changes of +51.13% and +27.24%, respectively.

It is also important to note the recent changes to analyst estimates for Dave & Buster's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.21% higher. Dave & Buster's is currently a Zacks Rank #3 (Hold).

In terms of valuation, Dave & Buster's is currently trading at a Forward P/E ratio of 11.8. This valuation marks a discount compared to its industry's average Forward P/E of 20.37.

Also, we should mention that PLAY has a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.78 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 14% 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.

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
 
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