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Why the Market Dipped But Dave & Buster's (PLAY) Gained Today

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In the latest trading session, Dave & Buster's (PLAY - Free Report) closed at $35.69, marking a +0.9% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.22%.

Heading into today, shares of the owner of Dave & Buster's, a chain of restaurants and arcades had gained 6.25% over the past month, outpacing the Retail-Wholesale sector's gain of 4.32% and the S&P 500's gain of 1.42% in that time.

The upcoming earnings release of Dave & Buster's will be of great interest to investors. The company is forecasted to report an EPS of -$0.19, showcasing a 575% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $473.55 million, indicating a 1.59% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $2.24 billion, which would represent changes of +2.15% and +13.85%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dave & Buster's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Dave & Buster's holds a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Dave & Buster's has a Forward P/E ratio of 12.4 right now. This indicates a discount in contrast to its industry's Forward P/E of 19.84.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 30% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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