Electronic Arts Inc. EA hit a new 52-week high of $66.33 in the Jun 19 trading session, closing at $65.95. The stock has gained approximately 7% over the last five days and risen 37.8% in the past six months.
The company’s shares have been on an uptrend since the Electronic Entertainment Expo (E3) 2015, which indicates that it was one of the major stocks in the video game business to benefit from the show.
At E3, Electronic Arts had a power packed show where it presented several of its most anticipated titles. The company showcased upcoming games like Star Wars Battlefront, Star Wars: The Old Republic, Plants Vs Zombies and Mirror’s Edge Catalyst. It also presented its famous racing title — Need For Speed. In addition, gamers also got to check out other upcoming tiles like New Mass Effect, FIFA 16, Rory McIlroy PGA Tour, NHL 16, NBA Live 16 andMadden NFL 16.
Further the company announced a digital expansion of Star Wars called The Old Republic Knights of the Fallen Empire that will be available for download from Oct 27, 2015. The digital expansion will offer a dynamic story that players can shape based on the options available. Knights of the Fallen Empire will begin with nine chapters and new chapters will be released thereafter. In addition, the expansion will be available for free to all subscribers of Star Wars: The Old Republic. We believe Electronic Arts’ impressive show at the E3 platform and its solid lineup boosted investors’ confidence.
However, the company faces a number of headwinds that include significant competition from other game makers such as Glu Mobile Inc. GLUU, Activision Blizzard, Inc. ATVI and Take-Two Interactive TTWO.
Currently, Electronic Arts sports a Zacks Rank #1 (Strong Buy).
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