In the latest trading session, Electronic Arts (EA - Free Report) closed at $93.06, marking a +1.01% move from the previous day. This change outpaced the S&P 500's 1.32% loss on the day. Meanwhile, the Dow lost 1.41%, and the Nasdaq, a tech-heavy index, lost 1.51%.
Prior to today's trading, shares of the video game maker had lost 2.4% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 5.95% and the S&P 500's loss of 5.09% in that time.
Investors will be hoping for strength from EA as it approaches its next earnings release. On that day, EA is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 96.15%. Meanwhile, our latest consensus estimate is calling for revenue of $732.53 million, down 8.2% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.55 per share and revenue of $5.18 billion, which would represent changes of -2.99% and +3.83%, respectively, from the prior year.
Any recent changes to analyst estimates for EA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 2.23% higher within the past month. EA currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that EA has a Forward P/E ratio of 20.25 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.96.
It is also worth noting that EA currently has a PEG ratio of 1.23. 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. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% 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.