Zynga (ZNGA) closed the most recent trading day at $9.57, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.4%. Elsewhere, the Dow lost 1.34%, while the tech-heavy Nasdaq lost 1.57%.
Prior to today's trading, shares of the maker of "FarmVille" and other online games had gained 9.37% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.45% and the S&P 500's loss of 0.46% in that time.
Wall Street will be looking for positivity from ZNGA as it approaches its next earnings report date. Meanwhile, our latest consensus estimate is calling for revenue of $626.37 million, up 58.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.36 per share and revenue of $2.22 billion. These totals would mark changes of +3500% and +41.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ZNGA. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.19% higher. ZNGA currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, ZNGA is holding a Forward P/E ratio of 26.69. Its industry sports an average Forward P/E of 26.69, so we one might conclude that ZNGA is trading at a no noticeable deviation comparatively.
Investors should also note that ZNGA has a PEG ratio of 1.33 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ZNGA's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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