$EA – Electronic Arts Inc, last closed at 69.79 – Bullish (Medium term)

Electronic Arts Inc is a game software content and services provider. The Company develops, markets, publishes and distributes game software content for consumers of various video game machines and electronic devices. It also provides game software-related services. The Company’s brands include Battlefield, Mass Effect, Need for Speed, Dragon Age, The Sims, Bejewelled and Plants v/s. Zombies, as well as brands based on licensed intellectual property such as FIFA, Madden NFL and Star Wars.

The stock has a market cap of $21.69 billion and a price-to-earnings ratio of 27.61. The company has a 50-day moving average of $67.65 and a 200 day moving average of $69.67. Electronic Arts has a one-year low of $53.55 and a one-year high of $76.92.

EA reported its Quarterly Earnings on Thursday for Q4, with EPS at $1.73, and revenue of $1.07 Billion beating the wall street consensus. Revenues have fallen by 5% from this quarter last year, when EA saw revenues of $1.12 billion. EA was down 11% yesterday post the announcement.

It is expected to plunge lower today, creating a resistance at $58 and surge towards a consensus target of ~ $80. Despite a whole bunch of analysts giving the “Buy” Rating for the stock, the sentiment index remains low, indicating a fall in the prices today.

$ UA- Under Armour Inc. Last closed at 84.07-Bullish (Short term)

Under Armour, Inc. is an American sports clothing and accessories company. The company is a supplier of sportswear and casual apparel.  Under Armour began offering footwear in 2006.  Under Armour’s global headquarters is located in Baltimore, Maryland with additional North American corporate offices. Under Armour announced an addition to their ColdGear product line, called Infrared, that was released in 2013. This line claims to disseminate heat using ceramic powder and re-circulate heat around the wearer’s body. This was purportedly designed so that the wearer’s heat signature will not be picked up.

The shares of the American sports accessories company were trading at a day’s high of $84.78 before closing at 84.07. There has been an increase in the sentiment level as the stock volume traded had increased post the company had announced its financial results for the fourth quarter ended December 31, 2015. The company had recorded an increase in net revenue by 31% in the fourth quarter of 2015 to $1.17 billion compared with net revenues of $895 million in the prior year’s period. Operating income increased 21% in the fourth quarter of 2015 to $178 million compared with $146 million in the prior year’s period.  Net income increased 21% in the fourth quarter of 2015 to $106 million compared with $88 million in the prior year’s period. Based on current visibility, the Company expects 2016 net revenues of approximately $4.95 billion, representing growth of 25% over 2015 and 2016 operating income of approximately $503 million, representing growth of 23% over 2015, which has made the investors and analyst to look as a short term gain from the company and experts advise a ‘buy’ for the company’s stocks.

Leave a Reply

Your email address will not be published. Required fields are marked *