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Electronic Arts (EA) Outpaces Stock Market Gains: What You Should Know
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Electronic Arts (EA - Free Report) closed at $94.47 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.34%.
Heading into today, shares of the video game maker had lost 9.02% over the past month, lagging the Consumer Discretionary sector's gain of 7.03% and the S&P 500's gain of 4.67% in that time.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. This is expected to be May 7, 2019. The company is expected to report EPS of $0.96, down 26.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.20 billion, down 4% from the year-ago period.
Any recent changes to analyst estimates for EA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.03% higher. EA is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that EA has a Forward P/E ratio of 20.79 right now. Its industry sports an average Forward P/E of 21.88, so we one might conclude that EA is trading at a discount comparatively.
Investors should also note that EA has a PEG ratio of 1.26 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% 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.
To follow EA in the coming trading sessions, be sure to utilize Zacks.com.
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Electronic Arts (EA) Outpaces Stock Market Gains: What You Should Know
Electronic Arts (EA - Free Report) closed at $94.47 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.34%.
Heading into today, shares of the video game maker had lost 9.02% over the past month, lagging the Consumer Discretionary sector's gain of 7.03% and the S&P 500's gain of 4.67% in that time.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. This is expected to be May 7, 2019. The company is expected to report EPS of $0.96, down 26.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.20 billion, down 4% from the year-ago period.
Any recent changes to analyst estimates for EA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.03% higher. EA is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that EA has a Forward P/E ratio of 20.79 right now. Its industry sports an average Forward P/E of 21.88, so we one might conclude that EA is trading at a discount comparatively.
Investors should also note that EA has a PEG ratio of 1.26 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% 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.
To follow EA in the coming trading sessions, be sure to utilize Zacks.com.