Electronic Arts’ stock returns
Electronic Arts (EA) stock has fallen ~9.0% since April, but has gained 17.0% this year. The electronic game maker’s stock had a disappointing run last year, falling 26.5%. However, like other gaming stocks, EA has created significant investor wealth over the years. EA stock has returned 23.3% in the last three years and 154.0% in the last five years, easily outperforming peers and broader markets. EA stock is currently trading 25.0% above its 52-week low of $73.91 and 64.0% below its 52-week high of $151.26.
In comparison, the SPDR S&P 500 (SPY) has returned 16.3% this year, 6.0% in the last 12 months, 47.3% in the last three years, and 64.5% in the last five years. The Invesco QQQ ETF (QQQ) has returned 19.3% this year, 4.7% in the last 12 months, 74.8% in the last three years, and 109% in the last five years. Although EA has underperformed SPY and QQQ in the last three years, it has easily outperformed them in the last five years.
What EA’s technical indicators suggest
EA stock is trading at $92.44, 3.7% below its 100-day moving average of $95.96, 2.4% below its 50-day moving average of $94.67, and 1.3% below its 20-day moving average of $93.67. Its MACD (moving average convergence divergence) of -0.90 indicates a downward trading trend. A stock’s MACD marks the difference between its short- and long-term moving averages.
EA’s 14-day RSI (relative strength index) score of 45 suggests the stock is closer to oversold than overbought. An RSI score above 70 implies a stock is overbought, while a score below 30 suggests it is oversold.