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Videogame Sales Getting a Boost From Coronavirus: 4 Winners
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The pandemic has been a blessing in disguise for some industries and videogame makers have been one of its biggest beneficiaries. With people mostly keeping indoors on fears of the virus and having not too many options for entertainment, video streaming and gaming have emerged as the most preferred choices.
The video gaming market was already thriving and the pandemic has given it a further boost. According to market research firm NPD Group, COVID-19 saw consumer spending on videogames in the United States reach new highs in the third quarter. And with coronavirus cases on the rise again, the videogame market is likely to flourish even more as people would prefer staying home till they get a vaccine.
Videogame Sales Surge
The videogame market was doing well from the beginning of the year. However, sales further started getting a boost from the second quarter after the pandemic compelled governments to go for shutdowns. This gave an organic push to sales as people started spending more on buying videogames and consoles after they were locked down in their homes.
According to NDP Group, on a year-to-date basis, $29.4 billion worth of video games have been sold in the United States. Moreover, consumers spent a whopping $11.2 billion on videogames in the third quarter of 2020, reflecting a 24% year-over-year jump in sales. Needless to say, gamers are buying more consoles, and those who already have consoles are spending more on games to play on them.
Industry Set to Soar Higher
The videogame industry so far had a great year with sales soaring through all three quarters. And the scene may not be any different in the fourth quarter given that surging cases of coronavirus has once again ignited fears in the minds of millions, who will prefer staying indoors more or at least till the time a vaccine hits the markets.
According to ReportLinker, the global market for mobile gaming is expected to reach $153.3 billion by 2027. Weekly downloads of mobile games in March 2020 jumped 30% compared to the year-ago period. Moreover, around 13 billion videogames were downloaded in the first quarter itself, which has only increased since then.
Our Choices
Given this sudden surge in sales and an upbeat sentiment in the video gaming industry, it makes for an opportune time to invest in gaming stocks that are sure to gain in the near term.
Microsoft Corporation (MSFT - Free Report) is one of the leading videogame makers, and hardware and accessory manufacturers. The company has been expanding its footprint in the videogame industry and recently announced that it will be acquiring videogame maker ZeniMax Media.
The company’s expected earnings growth rate for the current year is 16.8%. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the past 30 days. Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.
The company’s expected earnings growth rate for the current year is 51.6%. The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the past 60 days. Activision Blizzard carries a Zacks Rank #2.
Glu Mobile Inc. is a leading global publisher of mobile games. Its portfolio of top-rated games includes original titles Super K.O. Boxing!, Stranded and Brain Genius, and titles based on major brands from partners including Atari, Activision, Konami, Harrah's, Hasbro, Warner Bros., Microsoft,
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 17.1% over the past 60 days. Glu Mobile has a Zacks Rank #2.
Nintendo Co. (NTDOY - Free Report) is the acknowledged worldwide leader in the creation of interactive entertainment. Nintendo has created industry icons such as Mario and Donkey Kong, and launched franchises like The Legend of Zelda and Pokémon.
The company’s expected earnings growth rate for the current year is 47%. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the past 60 days. Nintendo has a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Videogame Sales Getting a Boost From Coronavirus: 4 Winners
The pandemic has been a blessing in disguise for some industries and videogame makers have been one of its biggest beneficiaries. With people mostly keeping indoors on fears of the virus and having not too many options for entertainment, video streaming and gaming have emerged as the most preferred choices.
The video gaming market was already thriving and the pandemic has given it a further boost. According to market research firm NPD Group, COVID-19 saw consumer spending on videogames in the United States reach new highs in the third quarter. And with coronavirus cases on the rise again, the videogame market is likely to flourish even more as people would prefer staying home till they get a vaccine.
Videogame Sales Surge
The videogame market was doing well from the beginning of the year. However, sales further started getting a boost from the second quarter after the pandemic compelled governments to go for shutdowns. This gave an organic push to sales as people started spending more on buying videogames and consoles after they were locked down in their homes.
According to NDP Group, on a year-to-date basis, $29.4 billion worth of video games have been sold in the United States. Moreover, consumers spent a whopping $11.2 billion on videogames in the third quarter of 2020, reflecting a 24% year-over-year jump in sales. Needless to say, gamers are buying more consoles, and those who already have consoles are spending more on games to play on them.
Industry Set to Soar Higher
The videogame industry so far had a great year with sales soaring through all three quarters. And the scene may not be any different in the fourth quarter given that surging cases of coronavirus has once again ignited fears in the minds of millions, who will prefer staying indoors more or at least till the time a vaccine hits the markets.
According to ReportLinker, the global market for mobile gaming is expected to reach $153.3 billion by 2027. Weekly downloads of mobile games in March 2020 jumped 30% compared to the year-ago period. Moreover, around 13 billion videogames were downloaded in the first quarter itself, which has only increased since then.
Our Choices
Given this sudden surge in sales and an upbeat sentiment in the video gaming industry, it makes for an opportune time to invest in gaming stocks that are sure to gain in the near term.
Microsoft Corporation (MSFT - Free Report) is one of the leading videogame makers, and hardware and accessory manufacturers. The company has been expanding its footprint in the videogame industry and recently announced that it will be acquiring videogame maker ZeniMax Media.
The company’s expected earnings growth rate for the current year is 16.8%. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the past 30 days. Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.
The company’s expected earnings growth rate for the current year is 51.6%. The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the past 60 days. Activision Blizzard carries a Zacks Rank #2.
Glu Mobile Inc. is a leading global publisher of mobile games. Its portfolio of top-rated games includes original titles Super K.O. Boxing!, Stranded and Brain Genius, and titles based on major brands from partners including Atari, Activision, Konami, Harrah's, Hasbro, Warner Bros., Microsoft,
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 17.1% over the past 60 days. Glu Mobile has a Zacks Rank #2.
Nintendo Co. (NTDOY - Free Report) is the acknowledged worldwide leader in the creation of interactive entertainment. Nintendo has created industry icons such as Mario and Donkey Kong, and launched franchises like The Legend of Zelda and Pokémon.
The company’s expected earnings growth rate for the current year is 47%. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the past 60 days. Nintendo has a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>