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Nintendo Co. (NTDOY) Gains But Lags Market: What You Should Know

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In the latest trading session, Nintendo Co. (NTDOY - Free Report) closed at $51.10, marking a +0.99% move from the previous day. This change lagged the S&P 500's 1.53% gain on the day. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the company had lost 6.19% over the past month. This has lagged the Consumer Discretionary sector's loss of 5.3% and the S&P 500's loss of 3.1% in that time.

Investors will be hoping for strength from Nintendo Co. as it approaches its next earnings release. In that report, analysts expect Nintendo Co. to post earnings of $0.77 per share. This would mark year-over-year growth of 5.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.58 billion, down 5.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $12.52 billion, which would represent changes of -22.99% and -16.77%, respectively, from the prior year.

Any recent changes to analyst estimates for Nintendo Co. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 3.85% lower within the past month. Nintendo Co. is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Nintendo Co. is currently trading at a Forward P/E ratio of 14.67. Its industry sports an average Forward P/E of 15.64, so we one might conclude that Nintendo Co. is trading at a discount comparatively.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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