Want to play some video games? Let’s check out Activision (ATVI) and Electronic Arts (EA). (September 30, 2016)
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I want to look at a couple of the gaming stocks, Activision ( NASDAQ:ATVI ) and Electronic Arts ( NASDAQ:EA ), here is why: The patterns are actually pretty constructive and I think you are good to buy either one. Lets take a look. First of all on Activision ( NASDAQ:ATVI ) we have had resistance right here at about $40.00, you can see it here, and then here. After this broke through $40.00, what happens? We rally up and then back to 40.00. Up and then back to 40.00. And finally a breakout here above say 43.00, and where are we now? We are in out next trading box between 43.00, we will call it right up here. So in general this stock, after a big move, sideways consolidation, is just starting the next move higher; all good. The 50-day moving average defines support, this works.
Now, lets look at Electronic Arts ( NASDAQ:EA ). Electronic Arts ( NASDAQ:EA ), different pattern but it is in the upper right hand corner of the chart, which is exactly where we want it to be. We look at Activision ( NASDAQ:ATVI ), you can see kind of more healthy consolidation here over the last month or so. But Electronic Arts ( NASDAQ:EA ), it has already had that, and now this is in some pretty solid upside momentum. The 50-day moving average up, here is the channel, the stock is working for you right here. What is the takeaway? I think you can buy Electronic Arts ( NASDAQ:EA ) OR Activision ( NASDAQ:ATVI ). Just know that on these, from a growth rate standpoint, Electronic Arts ( NASDAQ:EA ) is about 47 percent a year, which is pretty good.
And by the way, this is earning per share (EPS) growth from MarketSmith’s data, that is IBD. And then Activision ( NASDAQ:ATVI ) has just a 13 percent growth rate. So Activision ( NASDAQ:ATVI ) is really a much slower growing company, but those earnings are are starting to accelerate. So they are kind of fundamental pictures, but both of them are pretty strong. So what do you do? You know what? Flip a coin. I think either one of them is going to make you money; 11/07 is earnings for Activision ( NASDAQ:ATVI ), 11/3 is earnings for Electronic Arts ( NASDAQ:EA ). I think over the next month both of these stocks are going to continue to trickle higher in to earnings. So lets go make money in October.
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