NEW YORK (TheStreet) -- Electronic Arts (EA) - Get Report stock is climbing by 0.53% to $62.41 in early-afternoon trading on Wednesday.
The company is scheduled to report 2016 fourth quarter earnings after the market close on Tuesday.
Analysts expect adjusted earnings to increase to 42 cents per share from 39 cents a year ago, while revenue is expected to decline to $888.9 million from $896 in the 2015 fourth quarter.
Based in Redwood City, Calif., Electronic Arts is a developer, marketer, publisher and distributor of video games.
TheStreet's Chris Versace and Bob Lang of Trifecta Stocks have identified Electronic Arts as the "Chart of the Day." Here is what Versace and Lang had to say about the company:
Electronic Arts has been on a rollercoaster ride in 2016, but it seems to have found some footing, as we enter into the very critical summer months.
Since bottoming in February this year, the stock has been range-bound for two months. We have seen some identifiable patterns, however, and recently we notice a Morningstar pattern that had previously powered up the stock in a big way.
The circles on the price chart show four prior Morningstar patterns, all of which preceded some nice gains.
The moving average convergence divergence (MACD) has pulled down, but we can see that price is just at the bottom of the range. Turnover is starting to pick up, while a gap at $70 is betting to be hit. A sideways move as we have now is often followed up by some strong moves up or down.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Electronic Arts' strengths such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, solid stock price performance and expanding profit margins outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here:
EA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
