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Dave & Buster's (PLAY) Stock Falls Amid Market Uptick: What Investors Need to Know

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Dave & Buster's (PLAY - Free Report) ended the recent trading session at $35.24, demonstrating a -1.73% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.43%. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.71%.

The the stock of owner of Dave & Buster's, a chain of restaurants and arcades has risen by 2.08% in the past month, leading the Retail-Wholesale sector's loss of 4.9% and the S&P 500's loss of 2.1%.

Analysts and investors alike will be keeping a close eye on the performance of Dave & Buster's in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.19, indicating a 575% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $473.55 million, down 1.59% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.85 per share and revenue of $2.24 billion, indicating changes of +2.15% and +13.85%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Dave & Buster's. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.03% lower. Dave & Buster's presently features a Zacks Rank of #3 (Hold).

Investors should also note Dave & Buster's's current valuation metrics, including its Forward P/E ratio of 12.57. This signifies a discount in comparison to the average Forward P/E of 19.82 for its industry.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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