Electronic Arts (EA) closed the most recent trading day at $122.43, moving -1.91% from the previous trading session. This change was narrower than the S&P 500's daily loss of 5.89%. At the same time, the Dow lost 6.9%, and the tech-heavy Nasdaq lost 5.27%.
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 $0.70 per share, which would represent year-over-year growth of 3600%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, up 36.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.98 per share and revenue of $5.56 billion. These totals would mark changes of -12.94% and +6.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for EA. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. EA is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, EA is holding a Forward P/E ratio of 25.06. This represents a discount compared to its industry's average Forward P/E of 25.88.
We can also see that EA currently has a PEG ratio of 3.44. 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 Toys - Games - Hobbies was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
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Electronic Arts Inc. (EA) : Free Stock Analysis Report
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