Electronic Arts closed at $125.57 in the latest trading session, marking a +0.75% move from the prior day. This move lagged the S&P 500's daily gain of 1.43%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq gained 0.32%.
Coming into today, shares of the video game maker had lost 1.64% in the past month. In that same time, the Consumer Discretionary sector gained 0.12%, while the S&P 500 gained 5.65%.
Electronic Arts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Electronic Arts to post earnings of $1.45 per share. This would mark year-over-year growth of 40.78%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 18.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.03 per share and revenue of $7.46 billion. These totals would mark changes of +22.05% and +20.53%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Electronic Arts. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Electronic Arts currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Electronic Arts is currently trading at a Forward P/E ratio of 17.73. Its industry sports an average Forward P/E of 16.87, so we one might conclude that Electronic Arts is trading at a premium comparatively.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Electronic Arts (EA) Gains But Lags Market: What You Should Know
Electronic Arts closed at $125.57 in the latest trading session, marking a +0.75% move from the prior day. This move lagged the S&P 500's daily gain of 1.43%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq gained 0.32%.
Coming into today, shares of the video game maker had lost 1.64% in the past month. In that same time, the Consumer Discretionary sector gained 0.12%, while the S&P 500 gained 5.65%.
Electronic Arts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Electronic Arts to post earnings of $1.45 per share. This would mark year-over-year growth of 40.78%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 18.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.03 per share and revenue of $7.46 billion. These totals would mark changes of +22.05% and +20.53%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Electronic Arts. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Electronic Arts currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Electronic Arts is currently trading at a Forward P/E ratio of 17.73. Its industry sports an average Forward P/E of 16.87, so we one might conclude that Electronic Arts is trading at a premium comparatively.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.