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

Dave & Buster's (PLAY) closed at $34.99 in the latest trading session, marking a -0.57% move from the prior day. This change lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.

Coming into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had gained 5.87% in the past month. In that same time, the Retail-Wholesale sector gained 10.59%, while the S&P 500 gained 7.91%.

Wall Street will be looking for positivity from Dave & Buster's as it approaches its next earnings report date. On that day, Dave & Buster's is projected to report earnings of $1.02 per share, which would represent a year-over-year decline of 4.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $432.93 million, up 14.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.40 per share and revenue of $1.77 billion. These totals would mark changes of +53.85% and +35.39%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dave & Buster's. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.16% lower. Dave & Buster's is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dave & Buster's has a Forward P/E ratio of 10.35 right now. This represents a discount compared to its industry's average Forward P/E of 18.08.

We can also see that PLAY currently has a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
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