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Nintendo Co. (NTDOY) Gains But Lags Market: What You Should Know

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Nintendo Co. (NTDOY - Free Report) closed at $52.14 in the latest trading session, marking a +0.33% move from the prior day. This move lagged the S&P 500's daily gain of 1.97%. At the same time, the Dow added 1.88%, and the tech-heavy Nasdaq gained 0.25%.

Prior to today's trading, shares of the company had gained 1.05% over the past month. This has outpaced the Consumer Discretionary sector's loss of 12.81% and the S&P 500's loss of 9.93% in that time.

Investors will be hoping for strength from Nintendo Co. as it approaches its next earnings release. In that report, analysts expect Nintendo Co. to post earnings of $0.77 per share. This would mark year-over-year growth of 5.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.58 billion, down 5.95% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $12.97 billion. These totals would mark changes of -23.44% and -13.76%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Nintendo Co.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.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.28% lower within the past month. Nintendo Co. is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Nintendo Co. is currently trading at a Forward P/E ratio of 15.15. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 15.15.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

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