The United States is witnessing an unprecedented rise in COVID-19 cases across the country. Per the latest data from the Johns Hopkins University, COVID-19 cases have
crossed the 12 million mark. As a means to curb this relentless rise, several states across the country like Michigan, California and Washington have already enforced tight measures, as quoted in a BBC article. This means that people will have to continue to stay at home. Moreover, this development has largely dampened the flurry of promising vaccine news announced recently.
The pandemic has changed the way in which people work or study. Along with that, it has also changed the way in which people resort to entertainment. With movie theatres, restaurants and other places of entertainment remaining shut for the better part of the year and people confined within their homes, several forms of in-home entertainment have gained popularity. One among these is gaming, which will only gather more steam due to the fresh stay-at-home orders.
press release by the NPD Group in July 2020, 244 million people in the United States engaged in playing video games, reflecting an increase of 32 million from 2018. Moreover, the report also mentioned that the average number of hours spent playing video games each week also shot up. Gamers reported playing video games for 14 hours per week compared to 12 hours per week reported in 2018.
Video games have been a source of constant engagement as players battle it out, trying to beat the toughest game bosses or strategizing to keep rival players at bay. The COVID-19 pandemic has only increased that engagement manifold. Millions have resorted to this form of entertainment as they can remain safe while at the same time enjoy the thrill of engaging in an exciting activity.
Notably, the NPD report also stated that people have resorted to gaming as a way in which they can stay connected with their friends and family. The online multiplayer mode, which has been incorporated in major video games, is a good way to ensure that friends and families can engage together in an activity.
Separately, gamers also enjoy playing single-player story-based games where they can immerse themselves in a good story all the while enjoying the thrill of gaming too. Whether it be PCs, gaming consoles, or smartphones, gamers have found their sources of joy across all platforms. In fact, the NPD report also stated that a major part of U.S. consumers played games on one platform at least, as of May 2020. This reflected 7% total market growth from 2018.
3 Top Gainers
With the relentless rise in COVID-19 across the United States forcing states to enact further lockdown measures, people will have to remain at homes even longer. This means that they will have to keep relying on video games as a major form of entertainment. Hence, the situation is ideal to invest in video gaming stocks with strong fundamentals that are poised to benefit from this trend going forward. We have handpicked three such stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here Glu Mobile Inc. ( GLUU Quick Quote GLUU - Free Report) develops, publishes and markets free-to-play games for smartphone and tablet device users in the United States. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 17.1% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Activision Blizzard, Inc. ( ATVI Quick Quote ATVI - Free Report) along with its subsidiaries, develops and distributes content and services on video game consoles, personal computers, and mobile devices in the United States. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 6.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 51.6%. Nintendo Co., Ltd. ( NTDOY Quick Quote NTDOY - Free Report) , along with its subsidiaries, develops, manufactures and distributes electronic entertainment products, including video game platforms, in the United States. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 13.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 47%. Biggest Tech Breakthrough in a Generation
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