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Electronic Arts (EA) Gains As Market Dips: What You Should Know
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In the latest trading session, Electronic Arts (EA - Free Report) closed at $114.26, marking a +1.31% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 1.17%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the video game maker had gained 15.64% in the past month. In that same time, the Consumer Discretionary sector gained 15.44%, while the S&P 500 gained 15.69%.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. This is expected to be May 5, 2020. The company is expected to report EPS of $0.98, down 30.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.17 billion, down 13.98% from the year-ago period.
Investors should also note any recent changes to analyst estimates for EA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. EA currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, EA is holding a Forward P/E ratio of 22.77. Its industry sports an average Forward P/E of 24.45, so we one might conclude that EA is trading at a discount comparatively.
It is also worth noting that EA currently has a PEG ratio of 2.78. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Electronic Arts (EA) Gains As Market Dips: What You Should Know
In the latest trading session, Electronic Arts (EA - Free Report) closed at $114.26, marking a +1.31% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 1.17%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the video game maker had gained 15.64% in the past month. In that same time, the Consumer Discretionary sector gained 15.44%, while the S&P 500 gained 15.69%.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. This is expected to be May 5, 2020. The company is expected to report EPS of $0.98, down 30.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.17 billion, down 13.98% from the year-ago period.
Investors should also note any recent changes to analyst estimates for EA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. EA currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, EA is holding a Forward P/E ratio of 22.77. Its industry sports an average Forward P/E of 24.45, so we one might conclude that EA is trading at a discount comparatively.
It is also worth noting that EA currently has a PEG ratio of 2.78. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.