Dave & Buster's (PLAY) Stock Sinks As Market Gains: Here's Why

The latest trading session saw Dave & Buster's (PLAY) ending at $54.31, denoting a -0.22% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 0.12%.

Shares of the owner of Dave & Buster's, a chain of restaurants and arcades have depreciated by 12.27% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 1.25% and the S&P 500's loss of 0.9%.

Investors will be eagerly watching for the performance of Dave & Buster's in its upcoming earnings disclosure. The company is expected to report EPS of $1.57, up 8.28% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $613.89 million, indicating a 2.78% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.96 per share and revenue of $2.3 billion, indicating changes of +37.5% and +4.31%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Dave & Buster's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.02% lower. Right now, Dave & Buster's possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Dave & Buster's currently has a Forward P/E ratio of 13.74. This valuation marks a discount compared to its industry's average Forward P/E of 20.77.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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