How Gaming Stocks Are Trading Compared to Analysts’ Ratings

Activision Blizzard

So far in this series, we’ve looked at the historical returns, revenue estimates, and earnings estimates of four major gaming stocks. With most gaming companies expected to post robust revenues and earnings in fiscal 2018 and fiscal 2019, let’s see whether analysts expect upside potential in these stocks.

Of the 25 analysts tracking Activision Blizzard (ATVI) stock, 21 analysts recommended a “buy,” three recommended a “hold,” and one recommended a “sell.” The average 12-month price target for ATVI is $80.42, indicating that the stock is trading at a discount of 11.5% to analysts’ estimates.

How Gaming Stocks Are Trading Compared to Analysts’ Ratings

Electronic Arts

Of the 24 analysts tracking Electronic Arts (EA) stock, 19 analysts recommended a “buy,” four recommended a “hold,” and one recommended a “sell.” The average 12-month price target for EA is $80.42, indicating that the stock is trading at a discount of 27.0% to analysts’ estimates.

Take-Two Interactive Software

Of the 18 analysts tracking Take-Two Interactive Software (TTWO) stock, 14 analysts recommended a “buy,” three recommended a “hold,” and one recommended a “sell.” The average 12-month price target for TTWO is $137.60, indicating that the stock is trading at a discount of 21.0% to analysts’ estimates.

Zynga

Of the 16 analysts tracking Zynga (ZNGA) stock, eight analysts recommended a “buy,” seven recommended a “hold,” and one recommended a “sell.” The average 12-month price target for Zynga is $4.84, indicating that the stock is trading at a discount of 16.0% to analysts’ estimates.

Analysts expect 100% of gaming sales to be digital by the end of 2022. This shift is expected to result in a rise in profitability for companies. This trend is also expected to improve these companies’ earnings and bottom lines, which could positively impact stock prices.