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

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In the latest trading session, Dave & Buster’s (PLAY) closed at $37.13, marking a -0.21% move from the previous day. This change lagged the S&P 500’s 0.2% gain on the day.

Heading into today, shares of the owner of Dave & Buster’s, a chain of restaurants and arcades had lost 2.92% over the past month, lagging the Retail-Wholesale sector’s gain of 3.15% and the S&P 500’s gain of 5.66% in that time.

PLAY will be looking to display strength as it nears its next earnings release. In that report, analysts expect PLAY to post earnings of $0.10 per share. This would mark year-over-year growth of 109.9%. Meanwhile, our latest consensus estimate is calling for revenue of $316.87 million, up 190.57% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $1.33 billion, which would represent changes of +147.45% and +204.07%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PLAY. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PLAY is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, PLAY is currently trading at a Forward P/E ratio of 16.67. For comparison, its industry has an average Forward P/E of 20.5, which means PLAY is trading at a discount to the group.

The Retail – Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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