In the latest trading session, Zynga (ZNGA) closed at $9.07, marking no change from the previous day. This move lagged the S&P 500’s daily gain of 0.69%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.28%.
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Heading into today, shares of the maker of “FarmVille” and other online games had gained 38.69% over the past month, outpacing the Consumer Discretionary sector’s loss of 8.66% and the S&P 500’s loss of 5.29% in that time.
Wall Street will be looking for positivity from Zynga as it approaches its next earnings report date. This is expected to be February 9, 2022. In that report, analysts expect Zynga to post earnings of $0.08 per share. This would mark year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $720.04 million, up 3.02% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Zynga. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% higher. Zynga is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Zynga currently has a Forward P/E ratio of 22.26. For comparison, its industry has an average Forward P/E of 18.79, which means Zynga is trading at a premium to the group.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zynga Inc. (ZNGA): Free Stock Analysis Report
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