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Electronic Arts (EA) Outpaces Stock Market Gains: What You Should Know
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Electronic Arts (EA - Free Report) closed at $99.14 in the latest trading session, marking a +1.87% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.
Prior to today's trading, shares of the video game maker had gained 5.15% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.95% and the S&P 500's gain of 3.19% in that time.
EA will be looking to display strength as it nears its next earnings release. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $5.18 billion, which would represent changes of -2.56% and +3.83%, respectively, from the prior year.
It is also important to note the 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.
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.
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 0.35% higher. EA is currently a Zacks Rank #3 (Hold).
Digging into valuation, EA currently has a Forward P/E ratio of 21.29. For comparison, its industry has an average Forward P/E of 21.26, which means EA is trading at a premium to the group.
We can also see that EA currently has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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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Electronic Arts (EA) Outpaces Stock Market Gains: What You Should Know
Electronic Arts (EA - Free Report) closed at $99.14 in the latest trading session, marking a +1.87% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.
Prior to today's trading, shares of the video game maker had gained 5.15% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.95% and the S&P 500's gain of 3.19% in that time.
EA will be looking to display strength as it nears its next earnings release. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $5.18 billion, which would represent changes of -2.56% and +3.83%, respectively, from the prior year.
It is also important to note the 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.
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.
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 0.35% higher. EA is currently a Zacks Rank #3 (Hold).
Digging into valuation, EA currently has a Forward P/E ratio of 21.29. For comparison, its industry has an average Forward P/E of 21.26, which means EA is trading at a premium to the group.
We can also see that EA currently has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.