Chicago, IL – April 30, 2025 – Zacks Equity Research shares Philip Morris PM as the Bull of the Day and Dave & Buster’s Entertainment PLAY as the Bear of the Day.
Here is a synopsis of all five stocks.
Bull of the Day:
Philip Morris is a leading international tobacco company working to deliver a smoke-free future, evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector.
The stock sports a favorable Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Tobacco industry, which is currently ranked in the top 7% of all Zacks industries. Let’s take a closer look at how the company stacks up.
PM Shares Soar
Philip Morris shares have benefited nicely from its latest set of better-than-expected results, with the company exceeding both consensus EPS and sales expectations. Demand has remained strong for the tobacco titan, with product innovations, namely its smoke-free business (SFB), remaining key for its future.
Shipment volumes for its smoke-free business increased by nearly 15% year-over-year throughout its latest period. Shares have been very strong overall in 2025, gaining more than 40% and widely outperforming relative to the S&P 500.
Further, smoke-free products exceeded 40 billion units for the first time ever throughout its latest FY24, further reflecting the healthy demand picture PM has been enjoying.
Shares currently yield a market-beating 3.5% annually, likely attractive to those with an income-focused approach. And the company has consistently upped its payouts over its history, currently sporting a 2.8% five-year annualized dividend growth rate.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Philip Morris is currently a Zack Rank #1 (Strong Buy).
Bear of the Day:
Dave & Buster’s Entertainment is a leading owner and operator of high-volume venues in North America that combine dining and entertainment for both adults and families. Analysts have taken a bearish stance on the company’s EPS outlook, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Let’s take a closer look at what’s been impacting the company’s outlook.
Dave & Busters Underperforms
Dave & Buster’s shares have struggled to find their footing in 2025, down more than 30% and widely underperforming relative to the S&P 500. Its latest set of quarterly results did push some positivity back into shares, but analysts’ downward revisions following the release are a much more important development.
Concerning headline figures in the latest print, sales fell 11% year-over-year, whereas adjusted EPS was down more than 30%. The company’s top line has overall been stagnant over the last several years.
In addition, the company’s existing locations have struggled, with its FY24 comparable store sales decreasing 7% year-over-year compared to FY23.
Kevin Sheehan, CEO, on the weak Q4 results –
“While we are disappointed by our results in the fourth quarter, we are very encouraged by the clear opportunities we have identified over the past few months and the most recent trends in the business since taking actions to unwind mistakes and make appropriate changes.”
The company is currently forecasted to post 31% lower earnings in its current fiscal year (FY26) before returning to growth in FY27, with sales forecasted to grow 1.3% and 6.3%, respectively. The stock carries a Style Score of ‘D’ for Growth.
Bottom Line
Negative earnings estimate revisions, resulting from soft quarterly results, paint a challenging picture for the company’s shares in the near term.
Dave & Buster’s Entertainment is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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