This afternoon, Activision Blizzard Inc. (NASDAQ: ATVI) will report earnings. Investors are betting heavy that the company will top expectations of $0.24 per share. The stock is up 1.7% at the time of writing (2 p.m. EST, May 2).
Activision Blizzard is squarely in the center of a booming industry that emerged from almost nothing a decade ago...
So is Take-Two Interactive Software Inc. (NASDAQ: TTWO), the maker of Red Dead Redemption 2.
The e-gaming revolution is turning the hobbies of the 1980s in a $1 billion industry in 2019.
According to Statista, the industry is set to clear that benchmark this year. And the gaming analytics and market research experts over at Newzoo anticipate that the global esports market will surpass $1.6 billion by 2021.
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Today, we turn to the Money Morning Stock VQScore to identify the single best stock set to capitalize from the esports industry.
VQScore tracks the 1,500 most profitable companies and assigns each a score from 1 to 4. The higher, the better.
That score projects whether a stock is poised to break out, helping you earn double- and even triple-digit gains in short order.
This week, the VQScore system identified the single best esports stock to buy as we approach 2020 and beyond...
This Esports Champion Is "in the Game"
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
If you need additional evidence that esports is going to become a major force in the U.S. economy, check out what Comcast Corp. (NASDAQ: CMCSA) recently announced...
The company plans to open a 3,500-seat esports stadium in Philadelphia.
The $50 million, 60,000-square-foot facility will cater to events specifically for professional gamers.
The rise of online video platforms has made spectating e-games a new American pastime. Roughly 40% of the $1 billion industry is happening in the United States today.
With $400 million to go around here in the states, we want to invest in the best stock that taps into the live experience.
The top esports stock to own today is Electronic Arts Inc. (NASDAQ: EA).
Founded in 1982, Electronic Arts is the second largest publisher of video games in the United States. The California-based giant has consistently performed in a hyper-competitive industry that has seen the rise and fall of numerous video games and consoles over the last four decades.
Internationally, EA Sports is best known for its FIFA soccer game, and domestically, it's known for its Madden NFL football franchise.
But the firm has expanded beyond sports, capitalizing on the success of franchises like "The Sims," "Need for Speed," and "Battlefield."
It has also integrated with the Star Wars film franchise. The company published "Star Wars Battlefront" I & II.
Some analysts grew upset that Electronic Arts announced plans to not incorporate "loot boxes" in its new Star Wars game titled "Fallen Order." The practice of loot boxes is designed to charge gamers for various bonuses, special items, or ways to advance while playing the game. Wall Street believes that the new game won't be as profitable as its previous title...
However, analysts are largely missing the bigger picture: EA stands to benefit extensively from the growing interest of fans watching their favorite players on Amazon.com Inc.'s (NASDAQ: AMZN) live streaming site, Twitch.
EA recently released a "freemium" battle royale game called "Apex Legends" that has absolutely taken off and blown away all expectations.
This release is a real game changer for the firm. In the first 24 hours of its release, it was the top streamed game on Twitch.
So far, EA Sports has amassed 50 million players in its first month. You could compare its success to the most popular game in the world, "Fortnite¸" which took four times as long to reach 40 million players...
Conclusion
EA Sports has a VQScore of 4.45 and sits squarely in the Buy Zone. Based on the esports industry's steep upside in 2019, the 12-month outlook for this stock sits at $135 per share. That represents upside of 43% from Wednesday's closing price.
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