The video game industry is involved in the development, marketing, and sale of video game hardware and software. Top companies include Electronic Arts Inc. (EA) and Nintendo Co. LTD (NTDOY). Video game stocks, as represented by the VanEck Vectors Video Gaming and eSports ETF (ESPO), have dramatically outperformed the broader market, providing investors with a total return of 55.1% compared to the S&P 500's total return of 10.6% over the past 12 months. These market performance numbers and the statistics in the tables below are as of June 16.
Here are the top 3 video game stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Video Game Stocks
These are the video game stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Video Game Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|IGG Inc. (IGGGF)||0.66||0.8||5.1|
|Electronic Arts Inc. (EA)||126.52||36.5||12.3|
|SciPlay Corp. (SCPL)||13.93||1.8||13.8|
- IGG Inc.: Online games maker IGG produces games for browsers, mobile devices, and more. Among the company's most popular games are Lords Mobile, Clash of Lords, and Castle Clash.
- Electronic Arts Inc.: Electronic Arts is best known as a video game company. It develops, publishes, and markets video game software for consoles, personal computers, mobile phones, and tablets. The company reported solid growth in digital net bookings, which is the net amount of products and services sold digitally, in FY 2020 ended March 31. They rose 9% year-over-year (YOY) to $4.1 billion.
- SciPlay Corp.: SciPlay designs and publishes video games for mobile and web platforms, with titles including Jackpot Party Casino and Monopoly Slots. SciPlay posted record revenue in April, up 20% from March, as online use soared amid the COVID-19 pandemic. Net income increased by 127% YOY to $31 million for Q1 FY 2020 ended March 31, 2020.
Fastest Growing Video Game Stocks
These are the video game stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Video Game Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Take-Two Interactive Software Inc. (TTWO)||137.15||15.6||114.0|
|Electronic Arts Inc. (EA)||126.52||36.5||107.2|
|SciPlay Corp. (SCPL)||13.93||1.8||75.3|
- Take-Two Interactive Software Inc.: Take-Two develops interactive games and accessories for console and hand-held gaming systems as well as personal computers. In FY 2020 ended March 31, Take-Two saw net income increase by 21% YOY.
- Electronic Arts Inc.: See above for company description.
- SciPlay Corp.: See above for company description.
Video Game Stocks with the Most Momentum
These are the video game stocks that had the highest total return over the last 12 months.
|Video Game Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Activision Blizzard Inc. (ATVI)||73.19||56.4||61.5|
|Zynga Inc. (ZNGA)||9.10||8.7||46.8|
|NEXON Co. Ltd. (NEXOF)||21.98||19.4||43.9|
|VanEck Vectors Video Gaming and eSports ETF (ESPO)||N/A||N/A||55.1|
- Activision Blizzard Inc.: Activision Blizzard publishes, develops, and distributes video games and related products. Its popular franchises include Call of Duty, Guitar Hero, and World of Warcraft. In Q1 FY 2020, Activision Blizzard reported net revenue of $1.8 billion, down 2.0% YOY. Despite the decline, Q1 revenue beat Activision Blizzard's earlier estimate.
- Zynga Inc.: Zynga is a video game developer and publisher that focuses on mobile and web-based games. Its most prominent titles are FarmVille, Words with Friends, and Zynga Poker.
- NEXON Co. Ltd.: NEXON is a Japanese company developing online games for mobile devices and PC platforms. Its games include Combat Arms, the FIFA Online franchise, and AxE. NEXON's consolidated subsidiary NEXON Korea Corp. recently launched a version of the popular FIFA series in Korea.
YCharts. "Financial Data," Accessed June 16, 2020.
Electronic Arts, Inc. "Electronic Arts Reports Q4 and Full Year FY20 Financial Results," Accessed June 16, 2020.
SciPlay Corp. "SciPlay Q1 2020 Earnings Presentation," Page 2. Accessed June 16, 2020.
Take-Two Interactive Software, Inc. "Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal Year 2020," Accessed June 16, 2020.
Activision Blizzard, Inc. "Activision Blizzard Announces Strong First-quarter 2020 Financial Results," Accessed June 16, 2020.
NEXON Co. Ltd. "Nexon Launches EA SPORTSTM FIFA MOBILE in Korea," Page 1. Accessed June 16.