Dave & Buster's (PLAY) Surpasses Market Returns: Some Facts Worth Knowing

In the latest market close, Dave & Buster's (PLAY) reached $63.40, with a +0.41% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.37%.

Shares of the owner of Dave & Buster's, a chain of restaurants and arcades witnessed a gain of 19.54% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 0.11% and the S&P 500's gain of 3.8%.

The investment community will be closely monitoring the performance of Dave & Buster's in its forthcoming earnings report. The company's upcoming EPS is projected at $1.14, signifying a 42.5% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $610.21 million, up 8.24% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Dave & Buster's. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.7% higher. Right now, Dave & Buster's possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Dave & Buster's has a Forward P/E ratio of 15.39 right now. This signifies a discount in comparison to the average Forward P/E of 20.95 for its industry.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 43% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PLAY in the coming trading sessions, be sure to utilize 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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