Last Friday, video gaming giant Electronic Arts (EA) released a highly anticipated new game called the ‘Anthem,’ created by the Company’s partner developer BioWare. The game allows players to team with up to three others to explore vast ruins, battle deadly enemies, and claim outlandish artifacts while wearing powered exoskeletons known as “javelins.”
Unlike the enthusiastic reviews of its last viral hit ‘Apex Legends’, the PC version of this new game performed poorly with an average critic score of 61 out of 100 on reviews aggregation site Metacritic.
Yet video game consultants do not see any immediate cause of concern for investors. Rather, they are advised to tailor their expectations according to each new game. Further, investors should also bear in mind that many of EA’s revenues are generated by extremely popular yearly iterations such as its sports titles.
However, this feedback is not unanimous among all analysts. Some believe that the poor reviews of Anthem are consistent with the Company’s poor performance all year. They expect $4.75 billion in revenue now, much lower than the 9 months ago guidance of $5.55 billion. Also, the time of Anthem’s release coincides with a miserable February month, which saw the stock plummet to an intra-month low of $80.21 per share. This was somewhat recuperated by the success of Apex Legends that helped the stock bounce back to $106.84 per share later that month.
Analysts also believe that EA made a mistake by allowing reviews of the PC version of Anthem to surface early. It is expected that the game should achieve its full import on video game consoles.
The Stochastic Oscillator for EA moved out of overbought territory on October 17, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 72 similar instances where the indicator exited the overbought zone. In of the 72 cases the stock moved lower. This puts the odds of a downward move at .
EA moved below its 50-day moving average on October 23, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EA broke above its upper Bollinger Band on October 15, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for EA entered a downward trend on October 01, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on October 14, 2024. You may want to consider a long position or call options on EA as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EA just turned positive on September 27, 2024. Looking at past instances where EA's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EA advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. EA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.733) is normal, around the industry mean (30.698). P/E Ratio (33.584) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (1.320) is also within normal values, averaging (2.738). Dividend Yield (0.006) settles around the average of (0.083) among similar stocks. P/S Ratio (4.748) is also within normal values, averaging (55.771).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a publisher of game software content and services
Industry PackagedSoftware