Zynga closed at $7.57 in the latest trading session, marking a +1.07% move from the prior day. The stock lagged the S&P 500's daily gain of 2.66%. Meanwhile, the Dow gained 2.21%, and the Nasdaq, a tech-heavy index, added 3.57%.
Coming into today, shares of the maker of "FarmVille" and other online games had gained 9.34% in the past month. In that same time, the Consumer Discretionary sector gained 11.76%, while the S&P 500 gained 12.74%.
ZNGA will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2020. The company is expected to report EPS of $0.05, up 141.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $403.32 million, up 12.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.23 per share and revenue of $1.74 billion. These totals would mark changes of +2200% and +11.5%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ZNGA. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.2% lower. ZNGA is currently a Zacks Rank #3 (Hold).
Investors should also note ZNGA's current valuation metrics, including its Forward P/E ratio of 32.56. For comparison, its industry has an average Forward P/E of 27.63, which means ZNGA is trading at a premium to the group.
Investors should also note that ZNGA has a PEG ratio of 2 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. ZNGA's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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Zynga (ZNGA) Gains But Lags Market: What You Should Know
Zynga closed at $7.57 in the latest trading session, marking a +1.07% move from the prior day. The stock lagged the S&P 500's daily gain of 2.66%. Meanwhile, the Dow gained 2.21%, and the Nasdaq, a tech-heavy index, added 3.57%.
Coming into today, shares of the maker of "FarmVille" and other online games had gained 9.34% in the past month. In that same time, the Consumer Discretionary sector gained 11.76%, while the S&P 500 gained 12.74%.
ZNGA will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2020. The company is expected to report EPS of $0.05, up 141.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $403.32 million, up 12.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.23 per share and revenue of $1.74 billion. These totals would mark changes of +2200% and +11.5%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ZNGA. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.2% lower. ZNGA is currently a Zacks Rank #3 (Hold).
Investors should also note ZNGA's current valuation metrics, including its Forward P/E ratio of 32.56. For comparison, its industry has an average Forward P/E of 27.63, which means ZNGA is trading at a premium to the group.
Investors should also note that ZNGA has a PEG ratio of 2 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. ZNGA's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.