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Electronic Arts (EA) Dips More Than Broader Markets: What You Should Know
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Electronic Arts (EA - Free Report) closed the most recent trading day at $94.38, moving -0.51% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Prior to today's trading, shares of the video game maker had lost 5.28% over the past month. This has lagged the Consumer Discretionary sector's gain of 6.03% and the S&P 500's gain of 2.07% in that time.
Investors will be hoping for strength from EA as it approaches its next earnings release, which is expected to be May 7, 2019. In that report, analysts expect EA to post earnings of $0.96 per share. This would mark a year-over-year decline of 26.72%. Meanwhile, our latest consensus estimate is calling for revenue of $1.20 billion, down 4% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for EA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.03% higher. EA is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, EA is holding a Forward P/E ratio of 21.21. This represents a discount compared to its industry's average Forward P/E of 21.58.
Also, we should mention that EA has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Toys - Games - Hobbies was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% 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.
To follow EA in the coming trading sessions, be sure to utilize Zacks.com.
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Electronic Arts (EA) Dips More Than Broader Markets: What You Should Know
Electronic Arts (EA - Free Report) closed the most recent trading day at $94.38, moving -0.51% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Prior to today's trading, shares of the video game maker had lost 5.28% over the past month. This has lagged the Consumer Discretionary sector's gain of 6.03% and the S&P 500's gain of 2.07% in that time.
Investors will be hoping for strength from EA as it approaches its next earnings release, which is expected to be May 7, 2019. In that report, analysts expect EA to post earnings of $0.96 per share. This would mark a year-over-year decline of 26.72%. Meanwhile, our latest consensus estimate is calling for revenue of $1.20 billion, down 4% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for EA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.03% higher. EA is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, EA is holding a Forward P/E ratio of 21.21. This represents a discount compared to its industry's average Forward P/E of 21.58.
Also, we should mention that EA has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Toys - Games - Hobbies was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% 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.
To follow EA in the coming trading sessions, be sure to utilize Zacks.com.