In the latest trading session, Zynga (ZNGA - Free Report) closed at $6.07, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the maker of "FarmVille" and other online games had lost 2.25% in the past month. In that same time, the Consumer Discretionary sector gained 1.89%, while the S&P 500 gained 2.47%.
Investors will be hoping for strength from ZNGA as it approaches its next earnings release. On that day, ZNGA is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $361.57 million, up 54.56% from the year-ago period.
ZNGA's full-year Zacks Consensus Estimates are calling for earnings of $0.22 per share and revenue of $1.46 billion. These results would represent year-over-year changes of +175% and +50.62%, respectively.
Any recent changes to analyst estimates for ZNGA should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 6.67% lower. ZNGA currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ZNGA currently has a Forward P/E ratio of 27.59. This valuation marks a premium compared to its industry's average Forward P/E of 21.78.
Investors should also note that ZNGA has a PEG ratio of 1.84 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Gaming industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.