Electronic Arts (EA - Free Report) closed the most recent trading day at $76.57, moving -1.12% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.06%. Elsewhere, the Dow lost 1.81%, while the tech-heavy Nasdaq lost 2.99%.
Coming into today, shares of the video game maker had lost 7.83% in the past month. In that same time, the Consumer Discretionary sector lost 5.91%, while the S&P 500 lost 6.47%.
Investors will be hoping for strength from EA as it approaches its next earnings release, which is expected to be January 29, 2019. The company is expected to report EPS of $1.95, down 12.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.76 billion, down 10.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $5.26 billion, which would represent changes of +13.05% and +1.61%, respectively, from the prior year.
Any recent changes to analyst estimates for EA should also be noted by investors. 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.
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 remained stagnant within the past month. EA is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that EA has a Forward P/E ratio of 16.87 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.81.
We can also see that EA currently has a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.
To follow EA in the coming trading sessions, be sure to utilize Zacks.com.