Peeling Back the Layers on Electronic Arts Inc. (NASDAQ:EA)

For the most recent trading session, Electronic Arts Inc. (NASDAQ:EA) shares stayed in a range of $106.33 – 107.95. Sell-side street analysts on consensus have a target price of $111.02 on the stock. 

The company has a current price to earnings ratio of 34.95. The price to earnings ratio is a routinely used used by both analysts and investors to help evaluate company stock. Investors and analysts might also follow moving averages in relation to the current stock price. The moving average is a commonly used technical indicator that helps to evaulate price action. A moving average is thought to be a trend-following indicator because it is based off of previous prices. Moving averages may help to identify direction of trends, and they might also be used to set levels of support and resistance. Shares have recently traded $21.73 away from the 200-day moving average of $85.91. Shares have recently traded $12.09 off the 50-day moving average of $95.55.

Keeping an eye on the stock’s current price compared to its 52 week highs and lows may also be important. The 52 week high/low of a stock represents the highest or lowest that a stock has traded in the previous year. Traders may use these numbers to help determine the current value of a stock, and to try to predict price movement in the future. When a stock price gets close to either the 52 week high or low, this tends to draw the attention of investors and traders. Recently, shares of the company traded +51.58% away from its 52-week low of $71.01 and -4.03% away from the 52-week high of $112.16.

Analysts may also choose to examine a company’s PEG Ratio or price to earnings growth ratio when evaluating the stock. The price to earnings growth ratio is a stock’s price to earnings ratio divided by the growth rate of its earnings for a specific time period. Using the PEG ratio alone, a company with a PEG Ratio below one may signal the stock as being undervalued. On the other hand, if a company has a PEG Ratio above one, it may be considered overvalued. A PEG Ratio that hovers around one may point to the company being fair value. The current PEG Ratio for the stock is 1.62. 

Leave a Comment