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The Zacks Analyst Blog Highlights: Nintendo, Activision Blizzard, Glu Mobile, Capcom and DouYu International

Zacks Equity Research
Updated ·6 min read

For Immediate Release

Chicago, IL – May 26, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nintendo Co., Ltd. NTDOY, Activision Blizzard, Inc. ATVI, Glu Mobile Inc. GLUU, Capcom Co., Ltd. CCOEY and DouYu International Holdings Ltd. DOYU.

Here are highlights from Friday’s Analyst Blog:

Record Quarter for Videogame Sales: 5 Stocks to Buy

As more people stayed home during the first quarter of the year due to the coronavirus outbreak, they spent a record $10.86 billion on computer games, hardware and accessories, according to a report from analytics firm The NPD Group. The surge was led by Nintendo Co., Ltd., which alone helped push hardware sales up 2% over a year ago, to $773 million.

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As stay-at-home orders have been enacted on the federal and state levels, people are left with nothing to do at home except for playing video games. This has seen a sudden surge in demand for video games.

Videogame Sales Spike

According to the fresh report from The NDP Group, videogame sales were up 9% from the same quarter a year ago. Of the $10.86 million, $9.58 billion was spent just on games, up 11% from a year ago, NPD said.

Driving the recording-setting quarter were sales of Animal Crossing: New Horizons, Call of Duty: Modern Warfare, Doom Eternal, Dragon Ball Z: Kakarot, Fortnite, Grand Theft Auto V, Minecraft, MLB The Show 20 and NBA 2K20. Sales of video game accessories, including gamepads, headsets, cases and other peripherals increased 1%, reaching $503 million.

Coronavirus Helps Videogame Industry

Governments across the world are shutting down countries and implementing stay-at-home orders. This has seen certain businesses, including gaming, online streaming and video conferencing, witnessing a boost in user engagement.

According to Sellics, which offers technology for vendors on Amazon Marketplace, Switch sales on the ecommerce site have increased 2,979% since the start of 2020 in North America. Switch was also sold out at other major retailers. The report also says that videogame sales have jumped around 500% in the United States on Amazon so far this year.

Our Choices

With stay-at-home orders and lockdown likely to remain in place, let’s look at five stocks that are set to rally in the near future on surging traffic.

Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most-popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.

The company’s expected earnings growth rate for the current year is 18.7%. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the past 60 days. Activision Blizzardhas a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nintendo Co. is a worldwide leader in the creation of interactive entertainment. It manufactures and markets hardware and software for its popular home video game systems, including Nintendo 64 and Game Boy.

The company’s expected earnings growth rate for the current year is 6%. The Zacks Consensus Estimate for current-year earnings has improved 10.9% over the past 60 days. Nintendo has a Zacks Rank #2.

Glu Mobile Inc. is a leading global publisher of mobile games. Its portfolio of top-rated games includes original titles Super K.O. Boxing!, Stranded and Brain Genius, and titles based on major brands from partners including Atari, Activision, Konami, Harrah's, Hasbro, Warner Bros., Microsoft, PlayFirst, PopCap Games, SEGA and Sony.

The company’s expected earnings growth rate for the current year is 70.6%. The Zacks Consensus Estimate for current-year earnings has improved 16% over the past 60 days. Glu Mobilehas a Zacks Rank #2.

Capcom Co., Ltd. plans, develops, manufactures, sells and distributes consumer video games. Its operating segment consists of Digital Contents, Arcade Operations, Amusement Equipments and Other Businesses segments.

The company’s expected earnings growth rate for the current year is 29.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. Capcom has a Zacks Rank #1.

DouYu International Holdings Ltd. provides a game-centric live streaming platform. The company operates its platform on both PC and mobile apps. The company’s expected earnings growth rate for the current year is more than 100%. Its shares have gained 8.7% in the past 30 days. DouYu has a Zacks Rank #1.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Click to get this free report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Nintendo Co. (NTDOY) : Free Stock Analysis Report Glu Mobile Inc. (GLUU) : Free Stock Analysis Report Capcom Co., Ltd. (CCOEY) : Free Stock Analysis Report DouYu International Holdings Limited Sponsored ADR (DOYU) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research