Today on the last trading day of 2015, many investors will be looking to reassess their portfolios for the New Year. Investors will be taking their profits, cutting losses, and looking for new stocks that will make 2016 a profitable year.
If you had of Electronic Arts (EA – Analyst Report) and/or Activision Blizzard (ATVI – Snapshot Report), which saw respective returns of 48.5% and 96.03% year-to-date, then you probably are feeling pretty good as the year comes to a close. If not, do not worry, because 2016 could be just as, if not more successful for both of these stocks.
Electronic Arts
2015 was quite the year for Electronic Arts (EA – Analyst Report), as it has returned 48.5% year-to-date in 2015. The company also posted impressive earnings beats in each of the 3 quarters it has reported for thus far, beating estimates by an average of 74.54%.
Even though the company is currently a Zacks Rank #3 (Hold), 2016 is poised to be another successful one for Electronic Arts. The company has projected EPS growth of 16.04% for 2016, and it will look to continue its streak of beating analyst earnings estimates.
Electronic Arts also has a list of gaming franchises unlike most others, with popular names like FIFA, Madden, Battlefield, and Battlefront. The company’s latest release, Star Wars: Battlefront, should benefit greatly from the latest Star Wars movie release from Walt Disney (DIS – Analyst Report), in addition to the holiday shopping season.
Electronic Arts is also continuing to move from a hits-driven business to a high user engagement model, which will help to create a more constant revenue stream, and will not leave periods where financial success is limited if a game is not released in that specific time period. This change in business model will tap into markets where EA previously was not taking advantage of, and could help to improve overall revenues.
Activision Blizzard Inc.
Activision Blizzard Inc. (ATVI – Snapshot Report) is a worldwide pure-play online and console game publisher with leading marke positions across all categories of the rapidly growing interactive entertainment software industry. 2015 saw great returns for Activision Blizzard investors as the stock has gained 96.03%, and 2016 could hold similar potential.
