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Should Value Investors Buy Dave & Buster's Entertainment (PLAY) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Dave & Buster's Entertainment (PLAY - Free Report) . PLAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.17, while its industry has an average P/E of 23.48. Over the last 12 months, PLAY's Forward P/E has been as high as 16.31 and as low as 8.74, with a median of 10.61.
Investors will also notice that PLAY has a PEG ratio of 0.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PLAY's PEG compares to its industry's average PEG of 1.70.
Finally, our model also underscores that PLAY has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PLAY's P/CF compares to its industry's average P/CF of 17.83. Within the past 12 months, PLAY's P/CF has been as high as 7.29 and as low as 4.34, with a median of 5.57.
Another great Retail - Restaurants stock you could consider is Carrols Restaurant Group (TAST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.82 while its industry's price-to-book ratio sits at -27.97. For TAST, this valuation metric has been as high as 2.83, as low as 0.67, with a median of 1.85 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dave & Buster's Entertainment and Carrols Restaurant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PLAY and TAST feels like a great value stock at the moment.
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Should Value Investors Buy Dave & Buster's Entertainment (PLAY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Dave & Buster's Entertainment (PLAY - Free Report) . PLAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.17, while its industry has an average P/E of 23.48. Over the last 12 months, PLAY's Forward P/E has been as high as 16.31 and as low as 8.74, with a median of 10.61.
Investors will also notice that PLAY has a PEG ratio of 0.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PLAY's PEG compares to its industry's average PEG of 1.70.
Finally, our model also underscores that PLAY has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PLAY's P/CF compares to its industry's average P/CF of 17.83. Within the past 12 months, PLAY's P/CF has been as high as 7.29 and as low as 4.34, with a median of 5.57.
Another great Retail - Restaurants stock you could consider is Carrols Restaurant Group (TAST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.82 while its industry's price-to-book ratio sits at -27.97. For TAST, this valuation metric has been as high as 2.83, as low as 0.67, with a median of 1.85 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dave & Buster's Entertainment and Carrols Restaurant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PLAY and TAST feels like a great value stock at the moment.