In the latest trading session, Electronic Arts (EA - Free Report) closed at $96.39, marking a +1.2% move from the previous day. This move outpaced the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.53%.
Coming into today, shares of the video game maker had gained 1.46% in the past month. In that same time, the Consumer Discretionary sector lost 4.98%, while the S&P 500 lost 3.77%.
Investors will be hoping for strength from EA as it approaches its next earnings release. In that report, analysts expect EA to post earnings of $0.01 per share. This would mark a year-over-year decline of 96.15%. Our most recent consensus estimate is calling for quarterly revenue of $732.53 million, down 8.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $5.18 billion, which would represent changes of -2.56% and +3.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for EA. 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. 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 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 has moved 2.69% higher within the past month. EA is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note EA's current valuation metrics, including its Forward P/E ratio of 20.85. This valuation marks a discount compared to its industry's average Forward P/E of 21.3.
Investors should also note that EA has a PEG ratio of 1.26 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EA's industry had an average PEG ratio of 2 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 46, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.