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Zynga (ZNGA) Stock Sinks As Market Gains: What You Should Know

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Zynga (ZNGA - Free Report) closed at $10.35 in the latest trading session, marking a -0.96% move from the prior day. This move lagged the S&P 500's daily gain of 0.24%.

Prior to today's trading, shares of the maker of "FarmVille" and other online games had lost 1.88% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 1.91% and lagged the S&P 500's gain of 4.09% in that time.

ZNGA will be looking to display strength as it nears its next earnings release, which is expected to be August 5, 2021. In that report, analysts expect ZNGA to post earnings of $0.09 per share. This would mark year-over-year growth of 1000%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $713.64 million, up 37.73% from the year-ago period.

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 +29.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ZNGA. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZNGA is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ZNGA is holding a Forward P/E ratio of 26.22. This valuation marks a premium compared to its industry's average Forward P/E of 24.6.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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