Electronic Arts Inc. (NASDAQ:EA) develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and Plants vs. Zombies brands; and license games from others, including FIFA, Madden NFL, UFC, NHL, Formula 1, and Star Wars brands. The company also provides advertising services; and licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
- Market value: $35.51 billion
- Dividend yield: 0.54%
- P/E ratio: 56.76
- Analysts’ ratings: 8 Strong Buy, 14 Buy, 5 Hold, 0 Sell, 0 Strong Sell
- Analysts’ consensus recommendation: 2.00 (Buy)
Electronic Arts continues to be a world leader in video game stocks. It produces the gold standard for any sports games, with titles such as FIFA Soccer and Madden NFL churning up steady cash from their annual releases featuring each year’s players. It also produces a steady online services revenue from these franchises as players log on – particularly amid COVID-19 restrictions – to game with friends. Throw in popular shoot-em-up games like Battlefield and Apex Legends and there’s a huge built-in fan base eager for sequels regardless of whatever new products EA cranks out in the years to come.
EA’s earnings will grow 20% this year and then nearly 10% next year on top of that. As a world leader at more than $36 billion in market value and roughly $8 billion in annual sales, this value stock is a gaming powerhouse that no competitors can beat.