Electronic Arts (EA - Free Report) closed at $98.70 in the latest trading session, marking a -0.99% move from the prior day. This move lagged the S&P 500's daily loss of 0.49%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Heading into today, shares of the video game maker had gained 5.36% over the past month, outpacing the Consumer Discretionary sector's gain of 3.07% and the S&P 500's gain of 3% in that time.
Wall Street will be looking for positivity from EA as it approaches its next earnings report date. On that day, EA is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 13.27%. Meanwhile, our latest consensus estimate is calling for revenue of $1.24 billion, up 1.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.62 per share and revenue of $5.17 billion, which would represent changes of -1.49% and +3.62%, respectively, from the prior year.
Any recent changes to analyst estimates for EA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. EA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, EA is currently trading at a Forward P/E ratio of 21.58. Its industry sports an average Forward P/E of 24.02, so we one might conclude that EA is trading at a discount comparatively.
We can also see that EA currently has a PEG ratio of 3.73. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.38 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.