Science & Technology
Science and Technology
Science and Technology
Wed, July 28, 2010
Tue, July 27, 2010 Microsoft, Sony, Activision Blizzard, GameStop and Take Two Interactive
CHICAGO--([ BUSINESS WIRE ])--Today, Zacks Investment Ideas feature highlights Features: Microsoft (Nasdaq: [ MSFT ]), Sony (NYSE: [ SNE ]), Activision Blizzard (Nasdaq: [ ATVI ]), GameStop (NYSE: [ GME ]), and Take Two Interactive (NASDAQ: [ TTWO ]).
3 Video Game Stocks Could Surprise
Ever since the Wii came out, both Microsoft (Nasdaq: [ MSFT ]) and Sony (NYSE: [ SNE ]) have worked on their own technology that allows gamers to use body movement to play games. This year those plans are hitting the market. Gamers got a preview of Microsofta™s Kinect and Sonya™s Move at E3. Both companies plan to roll out their motion-controlled devices in the fall of 2010.
The Kinect and Move will usher in a new era of gaming beyond the basic sports games like bowling, tennis, or fitness/exercise work-outs. Players will become fully immersed in games that require dancing, jumping, catching, hitting, running, and even driving. The Kinect also allows gamers to navigate the Xbox 360a™s dashboard without a controller. Using voice commands and hand gestures (a la Tom Cruise in The Minority Report), Xbox users can watch movies, play games, chat with friends or even Facebook -- all without touching a controller.
Here are three ways to participate in the upcoming advance in video game sales:
Activision Blizzard (Nasdaq: [ ATVI ]) publishes interactive software products and peripherals. Its products cover various game categories, such as action/adventure, action sports, racing, role-playing, simulation, first-person action, music and strategy. Its games include Guitar Hero, Call of Duty and Tony Hawk.
The company had first-quarter EPS of $0.07, beating the Zacks Consensus Estimate by 5 cents, or 250%. ATVI has beaten the Zacks Consensus in four of the last five quarters.
In the last month, the Zacks Consensus Estimates for 2010 and 2011 are each down a penny. Activision Blizzard is scheduled to report second-quarter results on August 5.
ATVI is a Zacks #4 Rank stock. Its shares trade at 18x 2010 EPS estimates and 16x 2011 EPs estimates.
GameStop (NYSE: [ GME ]) is a retailer of new and used video game hardware, video game software and video game accessories.
For the first quarter, GameStop earned $0.47 per share, an increase of 11.6% compared to the year-ago quarter. It also beat the Zacks Consensus by a penny, or 2.1%. In the last three quarters, GameStop has beaten the Zacks Consensus Estimate by an average 2.3%.
In the last month, the Zacks Consensus Estimates for 2010 and 2011 have been flat. The video game retailer is scheduled to report second-quarter results on August 19.
GME is a Zacks #2 Rank stock. It trades at 8x fiscal 2011 consensus estimates and 7x fiscal 2012 consensus estimates.
Take Two Interactive (NASDAQ: [ TTWO ]) publishes, develops and distributes interactive entertainment software under the labels Rockstar Games and 2K, which publishes titles under 2K Games, 2K Sports and 2K Play. Its brands include Grand Theft Auto, Sid Meier's Civilization, NBA 2K and NHL 2K.
The company reported fiscal second-quarter results of $0.23, topping the Zacks Consensus by 6 cents, or 35.3%. Take Two has beaten the Zacks Consensus in the last five quarters by an average of 35.3%.
In the last month, the Zacks Consensus Estimates for 2010 and 2011 are flat.
Take Two has a Zacks #3 Rank, and its shares trade at 12x fiscal 2011 consensus EPS estimates.
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