Zynga (ZNGA) closed the most recent trading day at $9.05, moving +0.11% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the maker of "FarmVille" and other online games had gained 2.26% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.53% and lagged the S&P 500's gain of 2.67% in that time.
Investors will be hoping for strength from Zynga as it approaches its next earnings release. The company is expected to report EPS of $0.09, up 12.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $735.25 million, up 2.19% from the year-ago period.
ZNGA's full-year Zacks Consensus Estimates are calling for earnings of $0.40 per share and revenue of $3.11 billion. These results would represent year-over-year changes of +42.86% and +11.35%, respectively.
Any recent changes to analyst estimates for Zynga should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Zynga currently has a Zacks Rank of #3 (Hold).
Investors should also note Zynga's current valuation metrics, including its Forward P/E ratio of 22.68. This valuation marks a premium compared to its industry's average Forward P/E of 21.92.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.
To follow ZNGA in the coming trading sessions, be sure to utilize Zacks.com.
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