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Zynga (ZNGA) Gains But Lags Market: What You Should Know

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Zynga (ZNGA - Free Report) closed the most recent trading day at $10.47, moving +0.96% from the previous trading session. This move lagged the S&P 500's daily gain of 1.52%.

Prior to today's trading, shares of the maker of "FarmVille" and other online games had lost 1.05% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 2.52% and lagged the S&P 500's gain of 2.41% in that time.

Wall Street will be looking for positivity from ZNGA as it approaches its next earnings report date. This is expected to be August 5, 2021. The company is expected to report EPS of $0.09, up 1000% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $713.36 million, up 37.68% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.40 per share and revenue of $2.93 billion. These totals would mark changes of +471.43% and +29.14%, respectively, from last year.

Any recent changes to analyst estimates for ZNGA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. ZNGA is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ZNGA currently has a Forward P/E ratio of 26.11. For comparison, its industry has an average Forward P/E of 26.11, which means ZNGA is trading at a no noticeable deviation to the group.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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