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Zynga (ZNGA) Flat As Market Sinks: What You Should Know

Zacks Equity Research
·3 mins read

Zynga (ZNGA) closed the most recent trading day at $8.70, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.37%. Elsewhere, the Dow lost 1.92%, while the tech-heavy Nasdaq lost 3.02%.

Coming into today, shares of the maker of "FarmVille" and other online games had lost 5.23% in the past month. In that same time, the Consumer Discretionary sector gained 1.33%, while the S&P 500 lost 2.31%.

Wall Street will be looking for positivity from ZNGA as it approaches its next earnings report date. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $627.09 million, up 58.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.35 per share and revenue of $2.22 billion. These totals would mark changes of +3400% and +41.98%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ZNGA. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 1.93% higher. ZNGA is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ZNGA currently has a Forward P/E ratio of 24.86. This valuation marks a discount compared to its industry's average Forward P/E of 26.1.

We can also see that ZNGA currently has a PEG ratio of 1.24. 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. Gaming stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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