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Electronic Arts (EA) Gains As Market Dips: What You Should Know
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Electronic Arts (EA - Free Report) closed the most recent trading day at $139.01, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 1.89% loss on the day. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.
Coming into today, shares of the video game maker had gained 4.78% in the past month. In that same time, the Consumer Discretionary sector lost 3.32%, while the S&P 500 lost 1.79%.
Wall Street will be looking for positivity from Electronic Arts as it approaches its next earnings report date. This is expected to be February 1, 2022. In that report, analysts expect Electronic Arts to post earnings of $3.22 per share. This would mark year-over-year growth of 4.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.66 billion, up 11.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.07 per share and revenue of $7.67 billion, which would represent changes of +22.74% and +23.95%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Electronic Arts. 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.
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.
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 0.39% higher. Electronic Arts is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Electronic Arts is holding a Forward P/E ratio of 19.65. This valuation marks a premium compared to its industry's average Forward P/E of 18.57.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% 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.
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
Electronic Arts (EA - Free Report) closed the most recent trading day at $139.01, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 1.89% loss on the day. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.
Coming into today, shares of the video game maker had gained 4.78% in the past month. In that same time, the Consumer Discretionary sector lost 3.32%, while the S&P 500 lost 1.79%.
Wall Street will be looking for positivity from Electronic Arts as it approaches its next earnings report date. This is expected to be February 1, 2022. In that report, analysts expect Electronic Arts to post earnings of $3.22 per share. This would mark year-over-year growth of 4.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.66 billion, up 11.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.07 per share and revenue of $7.67 billion, which would represent changes of +22.74% and +23.95%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Electronic Arts. 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.
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.
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 0.39% higher. Electronic Arts is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Electronic Arts is holding a Forward P/E ratio of 19.65. This valuation marks a premium compared to its industry's average Forward P/E of 18.57.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.