Zynga (ZNGA) closed the most recent trading day at $9.48, moving -0.89% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.59%. At the same time, the Dow lost 2.72%, and the tech-heavy Nasdaq lost 2.19%.
ZNGA will be looking to display strength as it nears its next earnings release. On that day, ZNGA is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 250%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $494.20 million, up 31.31% from the year-ago period.
ZNGA's full-year Zacks Consensus Estimates are calling for earnings of $0.29 per share and revenue of $1.85 billion. These results would represent year-over-year changes of +2800% and +18.51%, respectively.
Any recent changes to analyst estimates for ZNGA 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 15.05% higher. ZNGA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZNGA is currently trading at a Forward P/E ratio of 33.17. This valuation marks a premium compared to its industry's average Forward P/E of 22.47.
We can also see that ZNGA currently has a PEG ratio of 2.66. 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 Gaming industry currently had an average PEG ratio of 1.89 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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