2 Top Gaming Stocks to Buy in August

 2 Best Gaming Stocks to Buy in August

The video game industry experienced a rough ride out of a perfect storm of macroeconomic headwinds in 2022. However, leading game developers continue to reach new audiences with increased gameplay realism and features that make it easier to play with friends online. The industry is poised to return to growth over the next year, which means good return potential for shareholders of leading brands.If you're interested in buying gaming stocks this month, here's why Electronic Arts (NASDAQ: EA ) and Corsair Gaming  should be at the top of your list.

Electronic art

Shares of Electronic Arts fell after the video game maker reported strong growth in the first quarter of fiscal 2024 (ended in March). The stock still looks like a solid investment based on the current pace of top titles and the company's deep game development future opportunities.

Net bookings, or adjusted revenue, rose an impressive 21% year over year. Growth was driven by strong sales of Star Wars: Jedi Survivor and accelerating sales of FIFA 23. This puts the company in a solid position to capitalize on the momentum with the upcoming release of EA Sports FC this fall, following EA's loss of branding rights with FIFA.

EA will not grow at this rate every quarter. Management's guidance on future bookings was the reason the stock fell after the earnings report. The company expects full-year bookings to improve to $7.3 billion to $7.7 billion, up slightly from $7.3 billion in fiscal 2023

However, the company has a strong development pipeline of new games that should ensure satisfactory growth and returns for investors. EA Sports is set to add another core title to its roster next year with the return of its college football franchise. While it may not top Madden, it will boost the company's bottom line, as there should be plenty of pent-up demand after a decade-long absence since EA's NCAA Football franchise was shut down due to a licensing issue.

The company is also working on two Marvel games in collaboration with Walt Disney, including action-adventure games based on the Iron Man and Black Panther franchises. Action hero games have been hit or miss from other game companies, but this is usually due to their overly simplistic gameplay and story lines that don't give players much freedom to explore. The first buzz is that these new superhero games from EA will be open world hero games, which is a popular genre and should increase their sales potential.

Another broader initiative that EA is investing in is providing additional features that help players connect with friends and build communities in its sports titles. This keeps players engaged and spending more time playing matches with others, which naturally leads to more in-game spending for additional content. EA's football franchise already has a community of over 150 million players – and growing.

The stock appears more than reasonably priced ahead of these opportunities, trading at a forward price-to-earnings (P/E) ratio of 20, a discount to the S&P 500 multiple of 26.Shares of Corsair Gaming are up 15% over the past year, but still trade well above their previous high. The company supplies essential gaming equipment for gamers, including peripherals and computer parts for building gaming PCs.

Naturally, as more gamers take up the hobby, it helps increase the demand for accessories such as game controllers, headsets, and other gaming peripherals. This also forces PC gamers to upgrade their machines to keep up with the higher demands that the latest games place on a computer's processing and storage capabilities.

In the peripherals market, Corsair faces stiff competition from Logitech International and many other brands. But Corsair is one of the most popular brands of gaming mice and keyboards. The company is characterized by its focus on the premium part of the market.

Most of the company's revenue comes from hardware components and memory chips that gamers use to build or upgrade their own gaming PCs. Corsair is the leader in these markets. Earlier this year, management announced that there are more players in major PC-making markets than before the pandemic, a good sign that Corsair's competitive position is strong and allowing the company to return to growth.

It seems to be turning the corner. Corsair just reported a 15% year-over-year increase in sales for the second quarter. In addition to improving sales trends, inventories have decreased and profits are improving. In the first half of 2023, adjusted earnings were $22 million, reversing a net loss a year ago.According to Expert Market Research, the global gaming peripherals market is expected to grow by 10% annually and reach $7.5 billion by 2028. As a leading brand, Corsair should be able to grow its gaming and peripherals segment in line with the industry.

As for the rest of the business, the global group of PC players has been growing steadily for many years, providing a built-in growth market for Corsair's components and memory segment.The stock's forward P/E of 30 looks expensive, but Corsair is a better value than meets the eye. As margins expand thanks to a leaner inventory and demand for its products returns, earnings per share could grow at a high double-digit rate and fuel a major stock rally over the next few years.

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John Ballard holds positions in Electronic Arts. The Motley Fool has positions in and recommends Logitech International and Walt Disney. The Motley Fool recommends Electronic Arts and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.

As the gaming industry continues to flourish and revolutionize entertainment, investors are keeping a close eye on gaming stocks. The growing popularity of online games, esports and mobile games has opened up promising investment opportunities. If you're looking to level up your investment portfolio, August is the perfect time to consider adding some of the best gaming stocks to your holdings. In this article, we will explore two gaming stocks that have the potential to generate significant returns and contribute to your financial success.

 is a leading player in the gaming industry with a diverse portfolio of successful franchises and innovative gaming technologies. As of August 2023, the company's stock has been performing exceptionally well and its future prospects look promising.

With the continued growth of the esports industry, it is well positioned to capitalize on this trend. They have successfully hosted and sponsored major esports events, attracting huge audiences and generating significant revenue. Additionally, their collaboration with leading esports teams and players further strengthens their dominance in the sector.

In addition to esports, it has also successfully adapted its games to mobile platforms, taking advantage of the rapidly developing mobile gaming market. This strategic move led to a significant increase in their user base and revenue streams. Their ability to adapt and innovate puts them at the forefront of the gaming industry, making them an attractive investment option.

 is another compelling gaming stock to consider adding to your investment portfolio. The company is known for its cutting-edge gaming technology, virtual reality (VR) gaming products, and an impressive lineup of immersive games.

The rise of virtual reality gaming has opened up a new world of possibilities for the gaming industry and is a pioneer in this field. Their VR gaming products have gained considerable attention from players around the world and the company has secured strategic partnerships with major technology companies, strengthening their market presence.

Additionally, it continues to push the boundaries of innovation and has several highly anticipated game releases in the works. Anticipation for these games is high and a successful launch could push the stock price up.

As the gaming industry is experiencing rapid growth and innovation, investing in gaming stocks represents a lucrative opportunity for investors. In August 2023, they will stand out as two top gaming stocks with promising potential for significant returns. The rise of esports, mobile gaming and virtual reality gaming provides a solid foundation for the success of these companies. However, as with all investments, it is essential to do your research and consider your risk tolerance before making any decisions.

 So, take the opportunity to enhance your investment portfolio by considering these two top gaming stocks and embark on an exciting journey to financial success. gaming industry, esports, mobile gaming, virtual reality gaming, investment portfolio, gaming stocks, August 2023, financial success, innovative gaming technology.