Back to top

Image: Bigstock

Electronic Arts (EA) Gains From Expanding Games Portfolio

Read MoreHide Full Article

Electronic Arts (EA - Free Report) is having a terrific year, with shares up almost 23% on a year-to-date basis. The upside can be attributed to a robust portfolio and solid performance from games like Apex Legends, The Sims and the FIFA franchise.

EA’s expanding game portfolio is a major growth driver. Partnerships with independent game studios like Velan, Zoink Games (popular for Fe), Glowmade and Hazelight (developer of A Way Out) have been a key catalyst in this regard.

Partnerships with these independent developers are expected to deepen further, as EA is now set to release Zoink Games’ Lost in Random, Glowmade’s RustHeart and Hazelight’s follow-up to A Way Out.

These along with expansion packs for The Sims franchise and new VOLTA Football mode for FIFA 20 are expected to improve user engagement levels, thereby driving bookings and top-line growth in the near term.

Notably, EA has outperformed the S&P 500’s rally of 13.3% on a year-to-date basis.

Year-to-date Performance

 
 

Upcoming Releases to Boost Engagement

EA is witnessing growth in active player accounts, owing to new releases, increased engagement in popular franchises and live services growth. These are helping the company fight intensifying competition from the likes of Activision , Take Two Interactive (TTWO - Free Report) and Gluu Mobile .

Upcoming releases like The Sims 4 Island Living expansion pack and VOLTA Football mode are expected to boost engagement levels.

Players of the upcoming The Sims 4 Island Living expansion pack can live a laid-back lifestyle on the tropical island of Sulani instead of a hectic city life. The pack is expected to release on PC and Mac on Jun 21, and on Xbox One and PlayStation 4 on Jul 16.

Moreover, EA will launch The Sims 4 Moschino Stuff Pack and The Sims 4 Realm of Magic Game Pack in the coming months, which are expected to add to the popularity of the franchise. Notably, the company plans to bring at least 20 new content drops and expansion packs to The Sims franchise in fiscal 2020.

Additionally, the VOLTA Football mode is expected to provide a boost to FIFA 20’s engagement levels. The feature offers a game mode that is inspired by small-sided form of football played in the streets. The new mode will be available to players from Sep 27, 2019, on PlayStation 4, Xbox One and PC.

EA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Take-Two Interactive Software, Inc. (TTWO) - $25 value - yours FREE >>

Electronic Arts Inc. (EA) - $25 value - yours FREE >>

Published in