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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 at $89.16 in the latest trading session, marking a -0.69% move from the prior day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.
Heading into today, shares of the video game maker had lost 7.75% over the past month, lagging the Consumer Discretionary sector's gain of 1.09% and the S&P 500's gain of 2.68% in that time.
Investors will be hoping for strength from EA as it approaches its next earnings release, which is expected to be July 30, 2019. On that day, EA is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 96.15%. Meanwhile, our latest consensus estimate is calling for revenue of $724.55 million, down 9.2% from the prior-year quarter.
EA's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $5.19 billion. These results would represent year-over-year changes of -2.35% and +3.85%, respectively.
Investors might also notice recent changes to analyst estimates for EA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 0.15% higher. EA is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, EA currently has a Forward P/E ratio of 19.59. For comparison, its industry has an average Forward P/E of 21.51, which means EA is trading at a discount to the group.
Investors should also note that EA has a PEG ratio of 1.19 right now. 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. The Toys - Games - Hobbies industry currently had an average PEG ratio of 2.12 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 19, which puts it in the top 8% 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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Electronic Arts (EA) Dips More Than Broader Markets: What You Should Know
Electronic Arts (EA - Free Report) closed at $89.16 in the latest trading session, marking a -0.69% move from the prior day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.
Heading into today, shares of the video game maker had lost 7.75% over the past month, lagging the Consumer Discretionary sector's gain of 1.09% and the S&P 500's gain of 2.68% in that time.
Investors will be hoping for strength from EA as it approaches its next earnings release, which is expected to be July 30, 2019. On that day, EA is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 96.15%. Meanwhile, our latest consensus estimate is calling for revenue of $724.55 million, down 9.2% from the prior-year quarter.
EA's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $5.19 billion. These results would represent year-over-year changes of -2.35% and +3.85%, respectively.
Investors might also notice recent changes to analyst estimates for EA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 0.15% higher. EA is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, EA currently has a Forward P/E ratio of 19.59. For comparison, its industry has an average Forward P/E of 21.51, which means EA is trading at a discount to the group.
Investors should also note that EA has a PEG ratio of 1.19 right now. 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. The Toys - Games - Hobbies industry currently had an average PEG ratio of 2.12 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 19, which puts it in the top 8% 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.