Zynga closed the most recent trading day at $10.33, moving +1.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.39%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, added 1.56%.
Wall Street will be looking for positivity from ZNGA as it approaches its next earnings report date. This is expected to be February 10, 2021. In that report, analysts expect ZNGA to post earnings of $0.09 per share. This would mark year-over-year growth of 125%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $676.63 million, up 56.12% from the year-ago period.
Investors should also note any recent changes to analyst estimates for ZNGA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. ZNGA is currently a Zacks Rank #4 (Sell).
Looking at its valuation, ZNGA is holding a Forward P/E ratio of 23.23. Its industry sports an average Forward P/E of 30, so we one might conclude that ZNGA is trading at a discount comparatively.
Meanwhile, ZNGA's PEG ratio is currently 1.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Gaming stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zynga (ZNGA) Outpaces Stock Market Gains: What You Should Know
Zynga closed the most recent trading day at $10.33, moving +1.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.39%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, added 1.56%.
Wall Street will be looking for positivity from ZNGA as it approaches its next earnings report date. This is expected to be February 10, 2021. In that report, analysts expect ZNGA to post earnings of $0.09 per share. This would mark year-over-year growth of 125%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $676.63 million, up 56.12% from the year-ago period.
Investors should also note any recent changes to analyst estimates for ZNGA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. ZNGA is currently a Zacks Rank #4 (Sell).
Looking at its valuation, ZNGA is holding a Forward P/E ratio of 23.23. Its industry sports an average Forward P/E of 30, so we one might conclude that ZNGA is trading at a discount comparatively.
Meanwhile, ZNGA's PEG ratio is currently 1.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Gaming stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.