What Happened?
Shares of slot machine and terminal operator Accel Entertainment (NYSE: ACEL) fell 3% in the afternoon session after a report revealed that U.S. consumer confidence dropped for a second consecutive month, hitting a five-month low amid worries over inflation and the job market.
Market volatility increased as a partisan standoff pushed the federal government closer to a shutdown. If lawmakers fail to reach a spending agreement, a shutdown would begin, furloughing thousands of federal workers. This prospect has weighed on investor sentiment, creating a 'risk-off' mood in the markets as traders brace for potential economic disruption. The political uncertainty adds a layer of caution for investors heading into the final day of the month.
Adding to the weakness, a key report showed U.S. consumer confidence unexpectedly fell to a five-month low in September. The Conference Board's consumer confidence index slid to 94.2, a steeper drop than analysts had anticipated and its lowest reading since April. This downturn reflects growing pessimism among Americans about inflation and a weakening job market. Consumer confidence is a closely watched economic indicator as it gauges households' willingness to spend. A decline suggests that consumers may pull back on discretionary purchases, such as dining out or shopping for non-essential goods, which could negatively impact the future revenues and profits of companies in these sectors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Accel Entertainment? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Accel Entertainment’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 17.3% on the news that the company reported second-quarter results that showed a significant drop in profit and missed Wall Street's expectations.
While the company posted record quarterly revenue of $335.9 million, an 8.6% increase from the prior year, its net income plummeted. Profits fell by over 50% to $7.3 million. This resulted in earnings per share of $0.08, which was less than half of the $0.17 reported in the same quarter last year and well below analysts' forecasts. The company attributed the sharp decline in net income primarily to a loss related to the changing value of contingent earnout shares, a form of common stock, which contrasted with a gain from the same item in the previous year.
Accel Entertainment is up 4.2% since the beginning of the year, but at $11.02 per share, it is still trading 15.2% below its 52-week high of $12.99 from July 2025. Investors who bought $1,000 worth of Accel Entertainment’s shares 5 years ago would now be looking at an investment worth $1,028.
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