Zynga (ZNGA - Free Report) closed the most recent trading day at $9.71, moving +0.21% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq gained 0.43%.
Coming into today, shares of the maker of "FarmVille" and other online games had lost 0.72% in the past month. In that same time, the Consumer Discretionary sector gained 6.98%, while the S&P 500 gained 6.78%.
Investors will be hoping for strength from ZNGA as it approaches its next earnings release, which is expected to be August 5, 2020. On that day, ZNGA is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 250%. Meanwhile, our latest consensus estimate is calling for revenue of $503.07 million, up 33.66% from the prior-year quarter.
ZNGA's full-year Zacks Consensus Estimates are calling for earnings of $0.29 per share and revenue of $1.85 billion. These results would represent year-over-year changes of +2800% and +18.51%, respectively.
Any recent changes to analyst estimates for ZNGA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ZNGA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZNGA is currently trading at a Forward P/E ratio of 33.61. This valuation marks a premium compared to its industry's average Forward P/E of 24.
We can also see that ZNGA currently has a PEG ratio of 2.69. 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 Gaming was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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.