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The video game industry is involved in the development, marketing, and sale of video game hardware and software. Some of the top companies in the industry today include Electronic Arts (EA) and Nintendo Co. LTD (NTDOY). Video game stocks, as represented by the VanEck Vectors Video Gaming and eSports ETF (ESPO), have outperformed the broader market, providing investors with a total return of 13.5% compared to the S&P 500’s total return of -12.6% over the past 12 months. These market performance numbers and the statistics in the tables below are as of March 19.
Here are the top 3 video game stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Video Game Stocks
These are the video game stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
- Changyou.com Ltd.: Chinese video game developer Changyou.com is known for its massively multiplayer online role-playing games (MMORPGs), including Tian Long Ba Bu. The company announced earlier this month that total revenue for its 2019 fiscal year (FY) rose 9.4% compared to FY 2018, and that GAAP net income for the year rose 38.0%.
- SciPlay Corp.: SciPlay designs and publishes video games for mobile and web platforms, with titles including Jackpot Party Casino and Monopoly Slots. The company announced in February that total revenue for FY 2019 grew 11.9% compared to FY 2018, and that net income grew 139.7%.
- Electronic Arts Inc.: Electronic Arts is best known as a video game company. The company develops, publishes, and markets video game software for consoles, personal computers, mobile phones, and tablets. Electronic Arts announced in December that it was partnering with Respawn Entertainment to launch the Apex Legends Global Series, an international multi-tournament eSports program.
Fastest Growing Video Game Stocks
These are the video game stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Video Game Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Changyou.com Ltd. (CYOU)||10.45||0.6||484.2|
|Electronic Arts Inc. (EA)||90.21||26.1||37.2|
|Nintendo Co. Ltd. (NTDOY)||40.71||38.8||34.8|
- Changyou.com Ltd.: See above for company description.
- Electronic Arts Inc.: See above for company description.
- Nintendo Co. Ltd.: Nintendo is a Japanese company that manufactures and sells gaming console hardware, both mobile and handheld, including its current-generation hybrid console, the Nintendo Switch. Nintendo also develops and sells video game software, and is best known for its Mario franchise of games.
Video Game Stocks with the Most Momentum
These are the video game stocks that had the highest total return over the last 12 months.
|Video Game Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Activision Blizzard Inc. (ATVI)||55.59||42.8||24.6|
|Nintendo Co. Ltd. (NTDOY)||40.71||38.8||16.5|
|Zynga Inc. (ZNGA)||6.20||12.1||15.9|
|VanEck Vectors Video Gaming and eSports ETF (ESPO)||N/A||N/A||13.5|
- Activision Blizzard Inc.: Activision Blizzard publishes, develops, and distributes video games and related products. Some of its popular franchises include Call of Duty, Guitar Hero, and World of Warcraft. The company announced earlier this month that it has appointed veteran Google executive Daniel Alegre to the roles of President and Chief Operating Officer (COO), effective April 7, 2020.
- Nintendo Co. Ltd.: See above for company description.
- Zynga Inc.: Zynga is a video game developer and publisher that focuses on mobile and web-based games. Its most prominent titles are FarmVille, Words with Friends, and Zynga Poker.
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