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.
The Zacks Analyst Blog Highlights: IGT, ATVI, ZNGA and TSG
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 30, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include International Game Technology PLC (IGT - Free Report) , Activision Blizzard, Inc. , Zynga Inc. and The Stars Group Inc. .
Here are highlights from Friday’s Analyst Blog:
Coronavirus Lockdown Leads to Gaming Boom: 5 Stocks to Watch
Over the past three months, the novel coronavirus outbreak has put cities under lockdowns and confined people to their homes. With schools, colleges and offices shut down, people are looking for sources of entertainment to keep them engaged. The online gaming space driven by Internet and cloud technology connects gamers worldwide.
Evidently, on Mar 22, On Steam, one of the largest PC gaming platforms said that it has hit a new record with nearly 20.7 million players actively gaming or chatting on its platform at the same time. The recent development in online gambling practices is also helping the gaming industry boom.
Online Gaming in Vogue
Game streaming has been trending in the past few years. And with gaming platforms like Twitch that make the experience lifelike, the graph is likely to move northward in the future as well. As a proof, Twitch recently reported that its week-on-week engagement is growing with average concurrent viewers now more than 1.5 million.
In 2019, e-sports recorded rapid global growth with revenues exceeding $1 billion and more than 443 million audience across the globe. The majority of the fans were based in North America and China. And why not? Internet usage is relatively low in online gaming. However, downloading games can be bandwidth-heavy.
Moreover, due to the current quarantine and lockdowns, physical sports have been put off. Thus, several companies are now focusing on online gaming. Boxing for example has a huge fan base. With real-life fights postponed due to the virus outbreak, companies have turned to gaming to keep fans entertained.
The fights are being played using computer-versus-computer simulations, with greatest-ever heavyweights pitted against each other in a tournament series and streamed online. The first two contests were viewed by nearly half a million people from across the globe and put Electronic Arts Inc.’s (EA) game Fight Night Champion in limelight.
Basketball is another popular sport in America. To counter the fall in real sporting events, the NBA 2K is hosting its first ever 3-on-3 tournament where players can participate online and grab the opportunity to win a prize pool of $25,000.
On the other hand, as traditional casinos remain closed due to lockdowns, many states are looking into legalizing online gambling, which could also curb the sharp decline in gaming tax revenues. So far, Nevada, New Jersey, Pennsylvania, Michigan, West Virginia and Delaware have legalized online gambling, with Nevada allowing only poker as online-casino game.
5 Stocks to Watch
With the coronavirus pandemic wreaking havoc, it seems that it may take weeks or even months for people to resume their normal life. Hence, we have shortlisted five gaming stocks that can benefit as people spend more time hooked on to their mobiles, personal computers, gaming consoles and joysticks due to home quarantine.
Our first choice is Electronic Arts known for its popular collections of sports, first-person shooter, action, role-playing, and simulation games like FIFA. The company’s expected earnings growth rate for the next quarter is more than 100% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 67.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 0.2% upward over the past 60 days.
iGaming systems and digital platforms provider International Game Technology PLC, also makes it up to our list. The company is sure to benefit with its range of poker, bingo, and online casino table and slot games with rapid legalization of online gambling.
This Zacks Rank #3 (Hold) company’s expected earnings growth rate for the current quarter is 91.7% against the Zacks Gaming industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.8% upward over the past 30 days.
Next we have, Activision Blizzard, Inc., the maker of gamers’ favorite Call of Duty series. The company boasts a solid portfolio of content and services on video game consoles, personal computers and mobile devices.
This Zacks Rank #3 company’s expected earnings growth rate for the current quarter is 22.6% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 22.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 0.4% upward over the past 30 days.
Zynga Inc.offers a series of games that can be played on mobile platforms, such as Apple iOS and Google's Android operating systems and also on social networking sites like Facebook.
This Zacks Rank #3 company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Gaming industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 9.5% upward over the past 30 days.
Lastly, we have, The Stars Group Inc. that offers an array of online real-money poker, casino and betting, play-money poker, and casino and sports prediction games. The company’s expected earnings growth rate for the current quarter is 18.4% against the Zacks Gaming industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.6% upward over the past 30 days. The Stars Group carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: IGT, ATVI, ZNGA and TSG
For Immediate Release
Chicago, IL – March 30, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include International Game Technology PLC (IGT - Free Report) , Activision Blizzard, Inc. , Zynga Inc. and The Stars Group Inc. .
Here are highlights from Friday’s Analyst Blog:
Coronavirus Lockdown Leads to Gaming Boom: 5 Stocks to Watch
Over the past three months, the novel coronavirus outbreak has put cities under lockdowns and confined people to their homes. With schools, colleges and offices shut down, people are looking for sources of entertainment to keep them engaged. The online gaming space driven by Internet and cloud technology connects gamers worldwide.
Evidently, on Mar 22, On Steam, one of the largest PC gaming platforms said that it has hit a new record with nearly 20.7 million players actively gaming or chatting on its platform at the same time. The recent development in online gambling practices is also helping the gaming industry boom.
Online Gaming in Vogue
Game streaming has been trending in the past few years. And with gaming platforms like Twitch that make the experience lifelike, the graph is likely to move northward in the future as well. As a proof, Twitch recently reported that its week-on-week engagement is growing with average concurrent viewers now more than 1.5 million.
In 2019, e-sports recorded rapid global growth with revenues exceeding $1 billion and more than 443 million audience across the globe. The majority of the fans were based in North America and China. And why not? Internet usage is relatively low in online gaming. However, downloading games can be bandwidth-heavy.
Moreover, due to the current quarantine and lockdowns, physical sports have been put off. Thus, several companies are now focusing on online gaming. Boxing for example has a huge fan base. With real-life fights postponed due to the virus outbreak, companies have turned to gaming to keep fans entertained.
The fights are being played using computer-versus-computer simulations, with greatest-ever heavyweights pitted against each other in a tournament series and streamed online. The first two contests were viewed by nearly half a million people from across the globe and put Electronic Arts Inc.’s (EA) game Fight Night Champion in limelight.
Basketball is another popular sport in America. To counter the fall in real sporting events, the NBA 2K is hosting its first ever 3-on-3 tournament where players can participate online and grab the opportunity to win a prize pool of $25,000.
On the other hand, as traditional casinos remain closed due to lockdowns, many states are looking into legalizing online gambling, which could also curb the sharp decline in gaming tax revenues. So far, Nevada, New Jersey, Pennsylvania, Michigan, West Virginia and Delaware have legalized online gambling, with Nevada allowing only poker as online-casino game.
5 Stocks to Watch
With the coronavirus pandemic wreaking havoc, it seems that it may take weeks or even months for people to resume their normal life. Hence, we have shortlisted five gaming stocks that can benefit as people spend more time hooked on to their mobiles, personal computers, gaming consoles and joysticks due to home quarantine.
Our first choice is Electronic Arts known for its popular collections of sports, first-person shooter, action, role-playing, and simulation games like FIFA. The company’s expected earnings growth rate for the next quarter is more than 100% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 67.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 0.2% upward over the past 60 days.
Electronic Arts carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
iGaming systems and digital platforms provider International Game Technology PLC, also makes it up to our list. The company is sure to benefit with its range of poker, bingo, and online casino table and slot games with rapid legalization of online gambling.
This Zacks Rank #3 (Hold) company’s expected earnings growth rate for the current quarter is 91.7% against the Zacks Gaming industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.8% upward over the past 30 days.
Next we have, Activision Blizzard, Inc., the maker of gamers’ favorite Call of Duty series. The company boasts a solid portfolio of content and services on video game consoles, personal computers and mobile devices.
This Zacks Rank #3 company’s expected earnings growth rate for the current quarter is 22.6% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 22.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 0.4% upward over the past 30 days.
Zynga Inc.offers a series of games that can be played on mobile platforms, such as Apple iOS and Google's Android operating systems and also on social networking sites like Facebook.
This Zacks Rank #3 company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Gaming industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 9.5% upward over the past 30 days.
Lastly, we have, The Stars Group Inc. that offers an array of online real-money poker, casino and betting, play-money poker, and casino and sports prediction games. The company’s expected earnings growth rate for the current quarter is 18.4% against the Zacks Gaming industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.6% upward over the past 30 days. The Stars Group carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.