3 Reasons to Buy EA

Rick Aristotle Munarriz, The Motley Fool
Updated

Electronic Arts (NAS: EA) is at a crossroads. On one side is a mobile gaming future where the company has struggled to find its footing. On the other side is the impending release of new consoles and great franchises that continue to deliver. I created a premium report on EA to help investors examine EA's future.

Below is an excerpt from the report, which lists three reasons to buy the company. It's just a sample of one section, but we hope you enjoy it.

Three reasons to buy

  • With a portfolio of some of the strongest brands in the entire industry, EA enjoys a diversified lineup of franchises like the Madden NFL, FIFA, Battlefront, and Medal of Honor games. This allows it to attract legions of loyal followers with each product launch, while also affording it enough product diversification to be dependent on a single flagship product to drive overall financial performance.

  • Digital gaming provides a nice growth tailwind for EA. With segment growth in the ballpark of 33% expected in the coming year and with the high-margin nature of the digital gaming business, digital represents a potential buoy for other struggling parts of EA's overall gaming business.

  • With new console refreshes from Nintendo this year, and releases expected for both Microsoft's Xbox and Sony's Playstation platforms in coming years, EA could benefit big time from the increased demand that often occurs during console upgrade cycles


Looking for more guidance?
That was just a sample of our new premium report on EA. If you're weighing whether the company is a buy or sell, the report is an essential resource for investors seeking more information on the company. Not only that, but the report comes with updated quarterly guidance and dives into upcoming catalysts on the horizon. To get started, simply click here now.

The article 3 Reasons to Buy EA originally appeared on Fool.com.

Longtime Fool contributor Rick Aristotle Munarriz has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Electronic Arts. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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