Gaming stocks are set for a record run as stronger-than-expected consumer confidence boosts holiday sales. At the same time, huge news for specific gaming stocks is sending shares soaring in anticipation. Though metaverse and Web3 gaming stocks took center stage in recent years, it might be time to go back to the fundamentals.
These three gaming stocks are industry heavyweights. But don’t let their relative maturity distract from growth potential. Each is primed to break out on the heels of bullish news, great forecasts, and material undervaluation.
Nintendo (NTDOY, NTDOF)
Nintendo (OTCMKTS:NTDOY, OTCMKTS:NTDOF) will likely be among the top gaming stocks in 2024. Last year saw a slew of bullish Nintendo news that, ultimately, didn’t do much for the stock. We saw virtual reality teasers, leaked Microsoft (NASDAQ:MSFT) acquisition chatter, and the Super Mario Bros Movie returned $1.36 billion globally. Shares ticked higher throughout the year, returning about 15%, but still – you’d expect a little more considering the rumors and news swirling around the gaming stock.
The holiday sales season will likely serve as a major boost to Nintendo, as it’s one of the few gaming companies adeptly navigating value pricing and quality. At the same time, the Super Mario Bros Movie proved Nintendo’s deep intellectual property portfolio is ripe for moviemakers. Studios are slowing on the superhero franchising, meaning they’re looking elsewhere for creative property to mine. And Nintendo owns hundreds of franchises that, with few exceptions, remain mostly untapped. We’re already seeing the potential as Nintendo develops the much-anticipated Legend of Zelda film. If Nintendo sticks the landing on this film and even just a few of the rumored developments pan out, then this gaming stock is ready for a record-setting 2024.
Take-Two Interactive (TTWO)
Take-Two Interactive (NASDAQ:TTWO) is set for a bull run of its own as the hotly-anticipated Grand Theft Auto VI preps for a 2025 release. Despite being ten years old, annual revenue for the title’s previous installment hit $781 million in September. In 2013, when GTA V dropped, it set records as the best opening week in gaming stock history, clearing $1.15 billion in just a few days. But anticipation surrounding GTA VI could see TTWO surpassing its already-high bar.
As proof, TTWO is set to join the NASDAQ-100 on Dec. 18, pointing to the company’s inherent strength beyond just popular gaming titles. And TTWO’s management has significant plans to keep the gaming stock’s momentum rolling. In May, the company’s annual report discussed plans to “deliver several groundbreaking titles [that will] set new standards of quality and success and enable [TTWO] to deliver over $8 billion in Net Bookings and over $1 billion in Adjusted Unrestricted Operating Cash Flow.”
TTWO is already ending 2023 with a bang and set for a strong 2024. That makes TTWO one of the top gaming stocks with growth potential.
Corsair Gaming (CRSR)
Corsair Gaming (NASDAQ:CRSR) dropped precipitously this year, but December marked a sharp incline for the gaming stock as shares rose 12% over the past month. Remember – gaming is more than the titles themselves, and Corsair’s suite of popular hardware establishes it firmly as a leader among gaming stocks. But shares seem materially undervalued, trading at just 1.04x sales and 9.5x earnings.
Its most recent earnings pointed to a possible reversal. The company posted earnings closely aligned with broad consensus but, critically, revenue beat analyst forecasts as hardware sales surged unexpectedly. Like other gaming stocks, Corsair stands to gain further from increased holiday sales. Couple that trend with general strength in hardware gaming, set to hit 10% annual growth through 2028, and Corsair is a perfect cheap gaming stock to buy today.
If you want a well-rounded portfolio of gaming stocks, don’t forget the peripherals. Corsair stands as a top pick to capture bullish gaming upside from another perspective.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
