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Here's Why Dave & Buster's (PLAY) is a Strong Value Stock

Zacks Equity Research
·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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Dave & Buster's (PLAY)

Founded in 1982 and headquartered in Dallas, TX, Dave & Buster's Entertainment, is a leading owner and operator of high-volume venues in North America that combine dining and entertainment for both adults and families. As of Jan 30, 2022, the company owned and operated 144 stores in 40 states, Puerto Rico and one Canadian province. The core concept of this restaurant chain is “Eat Drink Play and Watch”, all in one location. Under the Eat concept, the company offers a wide variety of starters, burgers, choice-grade steaks and health-conscious food.

PLAY is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 13.4X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 21.1X. Additionally, PLAY has a PEG Ratio of 0.9 and a Price/Cash Flow ratio of 8.8X. Value investors should also note PLAY's Price/Sales ratio of 1.7X.

Many value investors pay close attention to a company's earnings as well. For PLAY, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.42 to $3.34 per share for 2023. Per share PLAY boasts an average earnings surprise of 212%.

PLAY should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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