Many experts have said that it's time to slow down on buying growth stocks and focus instead on stocks with solid earnings. In today's video, I'll look at three profitable companies and share my reasons for why you should add them to your watch list. The three companies are Activision (ATVI -0.05%), Electronic Arts (EA 2.33%), and Take-Two Interactive (TTWO 4.39%).
Reasons to add them to your watch list:
- All three companies are profitable, positive in cash flow, have a strong balance sheet, and operate in a growing market of mobile gaming and in-game transactions.
- Activision has been very aggressive at expanding its mobile gaming exposure. As of April 1, it had numerous games on the top charts.
- Electronic Arts continues to expand its gaming catalog through acquisitions.
- Take-Two Interactive is the smallest of the group, but it expects to grow the fastest in terms of revenue. It is also the only one without any form of debt.
Click the video below for my full thoughts.
*Stock prices used were the closing prices of April 1, 2021. The video was published on April 3, 2021.