South Korea-based video game publisher Gravity (GRVY) has been impressing investors lately with its accelerating earnings growth. Gravity stock hit an all-time high after posting better-than-expected first-quarter results last week.
Gravity stock broke out of a cup-with-handle base at a buy point of 68.85 on May 13. It notched a record high of 88.80 the next day and entered the 20%-25% profit-taking zone.
On the stock market today, Gravity stock fell 5.8% to 81.64 during an overall down day on Wall Street.
Headquartered in Seoul, the company makes online and mobile games. Gravity’s biggest game, Ragnarok Online, is popular in South Korea, Japan and Taiwan. It offers the multiplayer online role-playing game in 83 markets and countries.
Gravity Stock Ranked No. 1 In Group
Gravity stock ranks No. 1 out of 14 companies in IBD’s Computer Software-Gaming industry group. It has a best-possible IBD Composite Rating of 99.
It has posted four straight quarters of accelerating growth in earnings per share. In the March quarter, it earned $2.50 a share, up 421% year over year. Sales climbed 90% to $118 million. In the December quarter, earnings rose 161% to $1.93 a share, while sales climbed 49% to $101 million.
Gravity’s first-quarter results got a boost from new mobile game Ragnarok M: Eternal Love and its sales in Southeast Asia, North America, South America and Oceania.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor companies.
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