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Zacks Industry Rank Analysis Highlights: Electronic Arts, Gamestop, Marvel Entertainment, Take-Two Interactive and Walt Disney

CHICAGO, May 08, 2008 (BUSINESS WIRE) -- Zacks.com releases the latest Zacks Industry Rank. Stocks featured
in this week's analysis includes Electronic Arts (Nasdaq: ERTS),
Gamestop (NYSE: GME), Marvel Entertainment (NYSE: MVL), Take-Two
Interactive (Nasdaq: TTWO) and Walt Disney (NYSE: DIS). To see the
Zacks Industry Rank and the trend in earnings estimates revisions for
more than 200 industry groups, visit http://at.zacks.com/?id=3154.

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA,
Senior Market Analyst for Zacks.com.

This is shaping up to be a good week for entertainment companies.

Marvel Entertainment's (NYSE: MVL) Iron Man generated box office
receipts of $100.75 million in its opening weekend, the 10th best
opening weekend ever. The performance is even more impressive when one
considers that this was the first movie the company produced
internally. (Friends are telling me that it's really good.)

Although shares of MVL jumped after last weekend's box office
numbers were announced, what might be going unnoticed is the fact that
the company also raised its full-year earnings guidance by a nickel on
Monday to between $1.35 and $1.55 per share. Notably, the new forecast
excludes the impressive performance by Iron Man.

Brokerage analysts had mostly been keeping their 2008 earnings
estimates unchanged over the past 30 days, leaving the consensus
forecast even at $1.51 per share. Interested investors should keep an
eye on Marvel's earnings estimates (http://at.zacks.com/?id=4572) to
see if Iron Man causes brokerage analysts to reassess the company's
prospects.

Take-Two Interactive (Nasdaq: TTWO) announced record sales of
Grand Theft Auto IV. Approximately six million units of the video game
have sold globally since the Apr 29 launch. The estimated retail value
of these sales is $500 million. Nearly 3.6 million units sold in the
first day.

Shares of TTWO have been trading in a range as investors await the
outcome of a takeover proposal by Electronic Arts (Nasdaq: ERTS). The
fiscal 2008 consensus earnings estimate for TTWO had declined by two
cents over the past 30 days, though it would seem the strong launch of
Grand Theft Auto IV should cause brokerage analysts to revisit their
forecasts.

A more broad way to take advantage of the video game space would
be to buy shares of Gamestop (NYSE: GME), who profits regardless of
which video game or system does well. GME likely accounted for a
sizeable percentage of Grand Theft Auto IV sales and should benefit
from the U.S. launch of Nintendo's Wii Fit later this month.

Then there is the mouse. On Tuesday night, Walt Disney (NYSE: DIS)
reported fiscal second-quarter earnings of 58 cents per share, eight
cents above expectations. It was the second big earnings surprise for
the entertainment conglomerate, which beat fourth-quarter expectations
by eight cents per share. An 11% rise in Parks and Resorts sales and
an 18% increase in Studio Entertainment revenues (thanks Miley Cyrus)
helped to drive earnings higher.

Prior to the earnings announcement, four of the 19 covering
brokerage analysts recently raised their full-year earnings
projections. The current consensus estimate, which was calculated
before last night's report, calls for DIS to earn $2.24 per share.
We'll see if that number changes.

MVL, ERTS and TTWO are Zacks #3 Rank ("hold") stocks. All three
stocks are classified in Toys/Game/Hobby
(http://at.zacks.com/?id=4569). This group does contain one Zacks #1
Rank ("strong buy") stock, Hasbro (NYSE: HAS), which just happens to
be the licensee for Iron Man toys.

Gamestop is Zacks #1 Rank ("strong buy") stock and is classified
in Retail-Consumer Electronics (http://at.zacks.com/?id=4570).

DIS is a Zacks #3 Rank stock and is classified in
Entertainment-Conglomerates (http://at.zacks.com/?id=4571).

The interactive Zacks Industry Rank List allows you to see all of
the companies, and their Zacks Rank, within more than 200 industries.
See the list at http://at.zacks.com/?id=3208.

About Zacks Industry Rank and the Zacks Rank

Zacks Industry Rank is calculated by averaging the Zacks Rank for
all covered companies within a given industry. The Zacks Rank is
assigned to approximately 4400 stocks and ranges from #1 ("Strong
Buy") to #5 ("Strong Sell"). Both the Zacks Industry Rank and the
Zacks Rank are quantitative indicators designed to cover periods of
1-3 months.

Since 1988, the Zacks Rank has proven that "Earnings estimate
revisions are the most powerful force impacting stock prices." Since
inception in 1988, #1 Rank stocks have generated an average annual
return of +32%. During the 2000-2002 bear market, Zacks #1 Rank stocks
gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the
Zacks Rank system has just as many Strong Sell recommendations (Rank
#5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5
stocks have underperformed the S&P 500 by 129% annually (+5 % vs.
+12%). Thus, the Zacks Rank system allows investors to truly manage
portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous
coverage of the industries and the stocks poised to outperform the
market. Subscribe to this free newsletter today by visiting
http://at.zacks.com/?id=2564.

Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which
was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew
he could find patterns in stock market data that would lead to
superior investment results. Amongst his many accomplishments was the
formation of his proprietary stock picking system; the Zacks Rank,
which continues to outperform the market by nearly a 3:1 margin. The
best way to unlock the profitable stock recommendations and market
insights of Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow of
Profitable ideas GUARANTEED to be worth your time! Register for your
free subscription to Profit From the Pros by going to
http://at.zacks.com/?id=2565.

Zacks Investment Research is under common control with affiliated
entities (including a broker-dealer and an investment adviser), which
may engage in transactions involving the foregoing securities for the
clients of such affiliates.

Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an offer
or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com
Contact: Charles Rotblut, CFA
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

Copyright Business Wire 2008


 
 

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