We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Electronic Arts (EA) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Electronic Arts (EA - Free Report) closed at $93.19, marking a +0.66% move from the previous day. The stock lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.8%.
Prior to today's trading, shares of the video game maker had lost 1.34% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.89% and the S&P 500's gain of 2.47% in that time.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. On that day, EA is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 92.31%. Meanwhile, our latest consensus estimate is calling for revenue of $732.53 million, down 8.2% from the prior-year quarter.
EA's full-year Zacks Consensus Estimates are calling for earnings of $4.57 per share and revenue of $5.18 billion. These results would represent year-over-year changes of -2.56% and +3.83%, respectively.
It is also important to note the recent changes to analyst estimates for EA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. EA is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that EA has a Forward P/E ratio of 20.25 right now. Its industry sports an average Forward P/E of 20.74, 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 1.23. 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. EA's industry had an average PEG ratio of 2.04 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 35, which puts it in the top 14% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Electronic Arts (EA) Gains But Lags Market: What You Should Know
In the latest trading session, Electronic Arts (EA - Free Report) closed at $93.19, marking a +0.66% move from the previous day. The stock lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.8%.
Prior to today's trading, shares of the video game maker had lost 1.34% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.89% and the S&P 500's gain of 2.47% in that time.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. On that day, EA is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 92.31%. Meanwhile, our latest consensus estimate is calling for revenue of $732.53 million, down 8.2% from the prior-year quarter.
EA's full-year Zacks Consensus Estimates are calling for earnings of $4.57 per share and revenue of $5.18 billion. These results would represent year-over-year changes of -2.56% and +3.83%, respectively.
It is also important to note the recent changes to analyst estimates for EA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. EA is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that EA has a Forward P/E ratio of 20.25 right now. Its industry sports an average Forward P/E of 20.74, 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 1.23. 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. EA's industry had an average PEG ratio of 2.04 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 35, which puts it in the top 14% 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.