DALLAS, July 21, 2025 (GLOBE NEWSWIRE) -- Dave & Buster’s Entertainment, Inc., (NASDAQ: PLAY), (“Dave & Buster’s” or “the Company”), an owner and operator of entertainment and dining venues, announced today that the Company made awards of stock options (“Options”) and performance stock units (“PSUs”) to Tarun Lal, as a material inducement to Mr. Lal joining the Company as its Chief Executive Officer. The awards were approved by the Board in accordance with Listing Rule 5635(c)(4) of the corporate governance ...

Company Performance - Dave Inc.'s shares have increased by 132.9% year-to-date, significantly outperforming the industry growth of 9.8% and the S&P 500 composite's rise of 6% [1] - Over the past three months, Dave's stock surged by 140.3%, again surpassing CoreCard's 38.9% and Qifu Technology's 47.6% growth [4] - The stock's strong performance has attracted investor interest, suggesting a potential long-term investment opportunity [4] Neobank Market Dynamics - The neobank market is projected to grow at a CAGR of 40.3% from 2025 to 2034, driven by the needs of the underbanked demographic [5] - Dave's ExtraCash service provides interest-free cash advances up to $500 without traditional credit checks, targeting underbanked consumers [6] - The company utilizes bank account history and spending patterns to assess creditworthiness, allowing it to serve sub-prime or non-prime consumers [6] Financial Metrics - Dave's current stock price is at 19.74X forward 12-month earnings per share, lower than the industry average of 23.35X, indicating a potentially attractive valuation [10] - The company's trailing 12-month ROE is 59.2%, significantly higher than the industry average of 6.6%, while its ROIC stands at 26.7% compared to the industry's -8.5% [12] - Dave's current ratio of 8.59 exceeds the industry average of 1.84, reflecting a strong liquidity position and the ability to cover short-term obligations [14] Revenue and Earnings Outlook - The Zacks Consensus Estimate projects 2025 revenues of $475.8 million, representing a 36.7% increase from the previous year, with further growth of 23.8% expected in 2026 [16] - The consensus estimate for 2025 earnings per share is $8.76, indicating a 67.2% surge from the prior year, with a 35.1% increase anticipated in 2026 [16] Investment Recommendation - Given the successful ExtraCash product, simplified fee structure, and promising results from CashAI in reducing credit risk, Dave is positioned as a compelling investment opportunity [17][18] - The company's strong fundamentals, discounted valuation, and robust financial metrics further support the recommendation for investors to buy the stock [18]

Company Performance - Dave Inc. has gained approximately 133% year-to-date, significantly outperforming the average gain of 0.8% in the Business Services sector [4] - The Zacks Consensus Estimate for Dave Inc.'s full-year earnings has increased by 69.7% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] - Dave Inc. currently holds a Zacks Rank of 1 (Strong Buy), reflecting its strong performance and favorable earnings estimates [3] Industry Context - Dave Inc. is part of the Technology Services industry, which includes 122 individual stocks and currently ranks 74 in the Zacks Industry Rank [6] - The average gain for the Technology Services industry so far this year is 9.6%, indicating that Dave Inc. is performing better than its industry peers [6] - Coherent, another stock in the Business Services sector, has also shown strong performance with a year-to-date increase of 1.4% and a Zacks Rank of 1 (Strong Buy) [4][5]

Core Insights - Dave & Buster's Entertainment, Inc. has appointed Tarun Lal as the new Chief Executive Officer effective July 14, 2025, following a comprehensive search by the Board of Directors [1][2] - The Board expressed confidence in Lal's ability to drive immediate impact and substantial shareholder value due to his successful track record in growing businesses [2] - Lal emphasized the potential for growth in both the Dave & Buster's and Main Event brands, highlighting their loyal customer bases and strong unit economics [2] Company Overview - Dave & Buster's Entertainment, Inc. operates 236 venues across North America, including 175 Dave & Buster's locations and 61 Main Event stores [4] - The company offers a unique combination of dining and entertainment experiences, allowing guests to "Eat Drink Play and Watch" in one location [4] - Main Event stores provide state-of-the-art entertainment options such as bowling, laser tag, and arcade games, catering to families [4] Leadership Background - Tarun Lal brings over 25 years of experience from Yum! Brands, where he served as President of KFC U.S. and held various leadership roles globally [3] - His previous roles included Global COO for KFC and Managing Director for KFC in multiple regions, where he led brand expansions and digital innovations [3]

Core Viewpoint - Dave Inc. has promoted Kyle Beilman to Chief Financial Officer and Chief Operating Officer, effective July 11, 2025, recognizing his significant contributions to the company's success and operational efficiency [1][2][3] Group 1: Leadership Changes - Kyle Beilman has been instrumental in driving the financial success and profitability of Dave since joining the company [2] - The expanded title of CFO and COO reflects Beilman's broad impact across the organization and his commitment to innovation and sustainable growth [2][3] Group 2: Company Overview - Dave is a leading neobank and fintech pioneer in the U.S., serving millions of everyday Americans with disruptive technologies [3] - The company aims to provide best-in-class banking services at a fraction of the cost compared to traditional banks [3]

Core Insights - Investors are encouraged to focus on companies that deliver strong returns after accounting for all operating and non-operating expenses, emphasizing the importance of profitability over loss-making firms [1] Company Analysis - Intuit Inc. (INTU), Dave Inc. (DAVE), and Nova Ltd. (NVMI) are highlighted as top investment picks for the second half of the year due to their high net income ratios [2] - The net income ratio is a critical measure of a company's profitability, indicating the percentage of net income relative to total sales revenues, with higher ratios suggesting better revenue generation and expense management [3] - The 12-month net profit margins for the selected companies are as follows: NVMI at 28.5%, INTU at 19.1%, and DAVE at 13.8%, all demonstrating strong sales and income growth compared to industry averages [9][10] Screening Criteria - Additional screening parameters include: - Zacks Rank of 1, indicating a strong buy recommendation based on historical performance [4] - Trailing 12-month sales and net income growth exceeding industry averages [5] - A net income ratio higher than the industry average, reflecting solid profitability [5] - A strong buy percentage rating greater than 70%, indicating a majority of broker recommendations are positive [5]

Core Insights - Dave Inc.'s ExtraCash service is crucial for the underbanked, representing 14.2% of U.S. households in 2023 [1][2] - The underbanked prefer neobanks due to limited access to affordable credit and high fees from traditional banks [2] - ExtraCash provides interest-free cash advances up to $500 without traditional credit checks, utilizing alternative data underwriting [3] - The new fee structure for ExtraCash, with a 5% fee capped at $15, enhances transparency and affordability for users [4] - Mobile banking is on the rise, with over 79% of the population expected to use online banking by 2029, positioning Dave's mobile-first platform favorably [5] - ExtraCash helps users avoid costly traditional banking fees, promoting financial resilience and inclusion [6] Financial Performance - DAVE's stock has increased by 657.6% over the past year, outperforming the industry average of 45.8% and competitors CoreCard and Qifu Technology [7] - DAVE trades at a forward price-to-earnings ratio of 25.69, higher than the industry average and Qifu Technology's 23.15 [11] - The Zacks Consensus Estimate for DAVE's earnings in 2025 is $8.74 per share, reflecting a 66.8% increase from the previous year [14]

Core Viewpoint - Barstool Sports founder Dave Portnoy has invested $10 million in Tesla stock, aiming for a quick profit amid a sell-off, with Tesla shares trading at $293.76 and down 6.85% at the time of purchase [1][4]. Group 1: Investment Strategy - Portnoy's strategy is characterized as "buying the dip," with an expectation to turn the investment into a $1 million profit within a few weeks [4]. - The investment comes during a period of sustained pressure on Tesla's stock due to various headwinds [4]. Group 2: Company Leadership and Political Activities - Portnoy has publicly questioned CEO Elon Musk's ability to effectively lead Tesla while engaging in political roles, particularly his involvement with the U.S. government [5][6]. - Musk's political activities, including endorsing Trump and forming a new "America Party," have contributed to negative sentiment around Tesla's stock [6][7]. Group 3: Sales Performance - Tesla's sales have significantly declined, with second-quarter deliveries falling 11% year-over-year to 394,380 vehicles, following a 13% decline in the first quarter [8]. - Demand in key European markets, such as France, Germany, and Norway, has seen steep declines [8].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for maintaining momentum in stock prices [1]. Group 1: Stock Performance - Dave Inc. has shown a significant price increase of 252.2% over the past 12 weeks, indicating strong investor interest and potential upside [3]. - The stock has also experienced a price increase of 28.4% over the last four weeks, suggesting that the upward trend is still intact [4]. - Currently, Dave Inc. is trading at 103.8% of its 52-week high-low range, indicating a potential breakout [4]. Group 2: Fundamental Strength - Dave Inc. holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The stock's Average Broker Recommendation is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like Dave Inc. that are on an upward trend supported by strong fundamentals [2]. - There are over 45 Zacks Premium Screens available for investors to find stocks that align with their personal investing styles [7].

Core Insights - Nu Holdings (NU) and Dave (DAVE) are significant players in the digital financial services sector, with NU serving over 118 million customers in Latin America and DAVE focusing on the U.S. market [2][9]. Group 1: Nu Holdings (NU) - NU experienced a 19% year-over-year growth in new customers in Q1 2025, reaching nearly 100 million active users, primarily driven by its expansion in Brazil [4][9]. - Financially, NU's revenue grew by 40% year-over-year, with net income increasing by 74%, and average revenues per active customer rose by 17% year-over-year on a foreign exchange-neutral basis [5][9]. - The company’s non-performing loan (NPL) ratio increased by 60 basis points, indicating strong underwriting and risk management [6]. - Regulatory approval for its banking license in April enhances NU's product capabilities and growth potential in both Brazil and Mexico, with expectations of an 8% CAGR in the Latin American fintech market from 2025 to 2030 [7]. Group 2: Dave (DAVE) - DAVE reported a 46% growth in ExtraCash originations in Q1 2025, contributing to a 47% increase in revenues and a remarkable 235% rise in adjusted EBITDA year-over-year [8][9]. - The member base grew by 15% year-over-year, with 569,000 new members added, reflecting strong demand for its services [8]. - DAVE's proprietary underwriting engine, CashAI, improved credit performance, resulting in an 18% year-over-year enhancement in the 28-day delinquency rate and a reduction in credit loss provisions [10]. - The company’s non-GAAP variable profit surged by 67% year-over-year, with a significant increase in variable margin [11]. - DAVE's focus on the U.S. market presents opportunities for expansion as the global fintech market is expected to grow at a 15.3% CAGR from 2025 to 2030 [12]. Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for NU's 2025 sales is $14.8 billion, indicating a 28.5% year-over-year growth, while earnings are expected to rise by 20% [13]. - For DAVE, the 2025 sales estimate is $474.4 million, suggesting a 36.7% year-over-year growth, with earnings projected to surge by 66.8% [13]. - NU is trading at a forward P/E ratio of 20.21X, slightly below its median, while DAVE is at 24.64X, lower than its median of 33.74X, indicating that NU appears cheaper compared to DAVE [16].