Zynga (ZNGA - Free Report) closed the most recent trading day at $8.50, moving +0.47% from the previous trading session. This change outpaced the S&P 500's 1.76% loss on the day. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 1.99%.
Heading into today, shares of the maker of "FarmVille" and other online games had lost 7.14% over the past month, lagging the Consumer Discretionary sector's gain of 3.48% and the S&P 500's gain of 1.56% in that time.
Investors will be hoping for strength from ZNGA as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $627.09 million, up 58.83% from the year-ago period.
ZNGA's full-year Zacks Consensus Estimates are calling for earnings of $0.34 per share and revenue of $2.22 billion. These results would represent year-over-year changes of +3300% and +41.98%, respectively.
Any recent changes to analyst estimates for ZNGA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZNGA currently has a Zacks Rank of #3 (Hold).
Investors should also note ZNGA's current valuation metrics, including its Forward P/E ratio of 24.57. This valuation marks a discount compared to its industry's average Forward P/E of 29.14.
Investors should also note that ZNGA has a PEG ratio of 1.22 right now. 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 1.04 at yesterday's closing price.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.