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4 Stocks to Make the Most of Solid Demand for Mobile Gaming

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The year 2020 turned out to be stellar for mobile gaming as the pandemic-led restrictions compelled people to stay indoors and look for at-home forms of entertainment. Notably, a report from App Annie stated that in 2020, 36% of all mobile apps downloaded were games, amounting to 80 billion downloads. Moreover, the report stated that there was an increase of 35% in hours spent on playing mobile games last year, in comparison to 2019.

In any case, even before the COVID-19 pandemic, mobile gaming was steadily gaining popularity, thanks to the rising usage of smartphones across the world. Markedly, mobile games are much easier to download and play in comparison to their console or personal computer (“PC”) counterparts, as these do not require anything other than a smartphone and an Internet connection.

Moreover, casual gamers have become hooked to free-to-play mobile games. This means that users can download a game for free, try it out and then decide to pay for it or continue playing without purchasing by opting to watch advertisements instead. On the other hand, core gamers can go for in-app purchases to progress considerably through the game.

Moreover, unlike consoles or PCs, smartphones are portable, which means that users can play at their convenience even while commuting. Meanwhile, another factor driving the growth of mobile gaming is the rapid implementation of the multiplayer mode or social gaming. Notably, multiplayer games allow users to interact and play games along with their friends and families. In fact, some mobile games are purely multiplayer, allowing players to interact and strategize their gameplay methods with their teammates, thereby enhancing their gaming experience.

Mobile Gaming Poised to Grow Further

The mobile gaming phenomenon is expected to sustain this year as well, thanks to the many advantages it offers over traditional gaming. Notably, a report by gaming analytics provider Newzoo stated that mobile gaming is set to rise 4.4% in 2021, generating revenues of $90.7 billion, and account for 52% of the global games market. In fact, 2021 has so far been good for mobile gaming. Markedly, a VentureBeat article citing a Sensor Tower report, stated that consumer spending on mobile games saw an increase of 25% in the first quarter of 2021, on a year-over-year basis.

4 Stocks to Keep an Eye On

Mobile gaming seems poised to grow further, owing to the conveniences it provides over traditional gaming methods. Hence, this seems like an opportune moment to watch out for stocks that can make the most of this continued upswing. Notably, we have selected four such stocks that carry a Zacks Rank #1 (Strong Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mattel, Inc. (MAT - Free Report) has ventured into mobile gaming with games like Hot Wheels id or Thomas & Friends: Adventure. Moreover, Mattel163, which is a joint venture between Mattel and NetEase, has launched many mobile games, including a mobile game version of the popular card game UNO. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 13.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 66.7%.

Microsoft Corporation (MSFT - Free Report) has forayed into mobile gaming by offering a free-to-play title, namely Forza Street, a spin-off of its popular Forza racing franchise. Other mobile games of the company include Microsoft Solitaire Collection and Microsoft Sudoku. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 5.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 35.4%.

Electronic Arts Inc. (EA - Free Report) offers many mobile games including free-to-play titles like Need For Speed: No Limits, Real Racing 3, and so on, along with premium titles like Need For Speed: Most Wanted. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 5.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 11.5%.

Activision Blizzard, Inc. (ATVI - Free Report) has popular mobile gaming titles like Call of Duty and Candy Crush. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 3% over the past 60 days. The company’s expected earnings growth rate for the current year is 8.9%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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