Video Game Sales Surge in August: 4 Solid Stocks – Yahoo Finance

Videogame sales have been on the rise for the past few months as the coronavirus pandemic has kept people confined to their homes. After an impressive first half of the year, video game sales once again surged in August, according to the latest figures from NDP.

August saw Americans spending record money on videogames, which helped the stocks in the space to log solid gains. And with the United States still reeling under the coronavirus scare, videogame sales are likely to further get a boost.

Video Game Sales Continue to Rise

According to latest figures from NDP, August saw $3.3 billion in spending across video game hardware, software, and accessories, reflecting an increase of 37% year over year. Year-to-date spending is now at $29.4 billion, which is 23% higher than the same period last year.

On the hardware front, consumers spent $229 million, with Nintendo Co.’s NTDOY Switch being the most in-demand console. Switch also set a new record for August hardware dollar sales, overcoming the previous record set in 2008 by the Wii. Overall, Switch unit sales volume has more than doubled compared to a year ago. On the peripheral front, flight sticks became a hot commodity following the launch of Microsoft Corporation’s MSFT Microsoft Flight Simulator 2020.

Nintendo Leads the Race

According to Research and Markets, the global console games market is expected to grow from $40.6 billion in 2019 to about $57.9 billion in 2020. The major driving force for the console games market is the rapid increase in the number of active gamers across the world. In 2017, there were 2.21 billion gamers worldwide and the number is expected to reach 2.73 billion by 2021. According to Nielsen, 64% of the general population in the USA is gamers.

Our Choices

Given this sudden surge in sales and upbeat sentiment in the video gaming industry, this makes an opportune time to invest in gaming stocks that are sure to gain in the near term.

The company’s expected earnings growth rate for the current year is 42.2%. The Zacks Consensus Estimate for current-year earnings has improved 15.5% over the past 60 days. 

The company’s expected earnings growth rate for the current year is 29%. The Zacks Consensus Estimate for current-year earnings has improved 12.7% over the past 60 days. 

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 7.8% over the past 60 days. 

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