Option chain shows key data for Paradox Interactive's stock options at various strike prices and expiration dates. Traders use this information to analyze potential trades and assess market sentiment for Paradox Interactive.

Paradox Interactive (OTC:PRXXF) Stock, Option Chain

Paradox Interactive AB is a Swedish company. It is engaged in the development and publishing of PC-based games. The company's product portfolio includes franchise brands such as g Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities, Skylines, Tyranny and Magicka. Paradox is also involved in the publishing and internal development of games and licensing of White Wolf's brands. The company distributes its games through the digital platform Steam as well as on Apple, Google Play, and Sony stores. It operates its business across the world. The majority of the company's revenue comes from the United States.

PARADOX INTERACTIVE AB by Paradox Interactive AB

Paradox Interactive AB

We like to look at places that the rest of the world, especially Wall Street and all the instant experts on the Internet, are ignoring.
Right now, all eyes are on, and have been on, US markets.
The United States has gotten everything right over the past decade, and the rest of the planet has been, as Bogart used to lament, at least two drinks behind.
We recovered from both the Great Financial Crisis and COVID quicker, flooded the zone with cash from every imaginable source, and inflated lovely asset bubbles while Europe and Asia staggered along.
US markets went to the moon, while even the best foreign markets never broke free of gravity.
At the end of the GFC, US stocks were 41% of the global market, which has swelled to about 65% today.
The last time US stocks were this dominant, Lyndon Johnson was still in the White House, college kids were going &#8220;Clean for Gene&#8221; and Bobby Kennedy Sr. was mulling over a run for President.
William McChesney Martin Jr. was the Fed Chair, Gerry Tsai was the hottest fund manager, and Jamie Dimon turned 12 years old.
US stocks were all the rage and then delivered a whopping return of zero for the next 14 years, with several disastrous bear markets along the way.
The S&amp;P 500 (Ticker: SPY) lost about 4.5% a year on average.
International stocks outperformed US stocks by a dangerous margin, with a revitalized Japan leading the way higher.
That does not mean that it will happen again, right?
After all, we just elected a pro-business, low-tax President and interest rates will be moving lower.
Not only can it happen again, I would suggest it is likely to happen again.
I might also suggest you Google (Ticker: GOOGL) &#8220;Richard Nixon,&#8221; &#8220;Arthur Burns,&#8221; and &#8220;The Nifty Fifty&#8221; when you can.
The world loves the US stock market right now, and no one is considering Europe or Asia as investment opportunities.
That means that it is Under the Radar, and we are interested.
While economic growth outside the United States has been somewhat sluggish, this does not mean there has been zero growth.
Several companies have shown outstanding growth, and we want to start our international expedition in search of excess profits there.
My favorite growth measures are not earnings-related. It has long been my theory—and it holds up to rigorous testing—that the best growth measures are revenues and book value growth.
If revenues are high and cash has been reinvested in the business in a manner that grows the company&#8217;s net worth, that is sustainable growth.
A good accountant can make earnings appear to be whatever they desire, but the amount of stuff sold and the bottom-line net worth of the business are much harder to twist.
The income statement is the story, but the balance sheet is the finale.
Turkcell Iletisim Hizmetleri A.S. ADR (Ticker: TKC) is a great example of a sustainable growth company that is way off anyone&#8217;s radar screen. Turkey is hardly a hot topic of conversation around the water coolers of Wall Street or any other street in the United States.
Turkcell is a digital communication company operating in Belarus and Northern Cyprus. The company offers cell service, data, TV, and digital services over its network in its core markets.
It is growing like crazy, with revenues increasing by 42 percent annually over the past five years and the company&#8217;s value rising even faster, with book value rising by more than 60 percent a year.
The company is still in a hyper-growth phase with no signs of stopping.
The beauty of Turkcell lies in its ability to evolve. This is not your average telecom giant stuck in a rut of traditional services. Turkcell has embraced digital transformation with open arms, rolling out fintech solutions, digital subscriptions, and even cloud services. Couple this with its early investments in 5G, and you have a business poised to capture a huge slice of the digital economy in Turkey and surrounding countries.
Despite the noise around Turkey&#8217;s economic challenges, Turkcell has delivered consistent revenue growth and maintained fair profit margins. It is a cash-generating machine, and management has not forgotten about shareholders, doling out reliable dividends year after year. Add to that a valuation that is downright cheap compared to global peers, and you have a stock that ticks all the right boxes.
The stock has been moving higher but trades at a very reasonable valuation of just 15 times trailing earnings. If they come close to hitting this year&#8217;s earnings estimate, the stock will be trading at a single-digit P/E.
Growing earnings and an expanding multiple can create a wildly profitable combination in Turkcell shares for investors willing to look outside the United States for opportunities.
It is not always easy to be beautiful.
In fact, sometimes, it requires the help of surgeons and a collection of medical devices.
Many of these devices are made by InMode (Ticker: INMD), an Israeli company that manufactures minimally invasive technologies and devices for aesthetic repair and touch-ups without surgery, scars, or lasers.
This Israeli-based medical device company has carved out a sweet spot in the aesthetics industry with its minimally invasive and non-invasive body contouring and skin-tightening solutions.
InMode has built a reputation for delivering products that providers and patients love, and the financials prove it. The company boasts outstanding margins and a fortress-like balance sheet with zero debt and a growing pile of cash. Management has shown they know how to run a tight ship and are committed to rewarding shareholders, evidenced by their share buyback program.
The aesthetics market is not slowing down anytime soon, with growing demand fueled by rising disposable incomes and a global shift toward non-invasive beauty treatments. InMode&#8217;s innovative product pipeline keeps it ahead of competitors, ensuring a steady stream of revenue growth.
Over the last five years, sales have grown at over 30% annually, and InMode&#8217;s net worth is growing at almost 60% a year.
At its current valuation, InMode is a steal. You are getting a high-growth, high-margin business that throws off cash and operates in a market with tailwinds for years to come.
U.S. investors are ignoring the rest of the world.
Europe, in particular, is out of favor.
The economy is a mess. The stock markets are moribund.
The only rational choice is to start shopping for high-growth bargains and undervalued asset conversion opportunities (more on this next week)

Opinion

GOOGL

INMD

Under the Radar: From Overlooked to Overperforming - Global Markets Await

WIIM

Hilton Grand Vacations shares are trading lower. Truist Securities cut its price target on the stock from $52 to $51.

Bernstein analyst Richard Jaffe initiates coverage on Carnival (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) with a Market Perform rating and announces Price Target of $26.

News

Price Target

Initiation

Analyst Ratings

Bernstein Initiates Coverage On Carnival with Market Perform Rating, Announces Price Target of $26

IPOs

CGTL

Creative Global Technology IPO Shares Open For Trade At $4.29/Share; IPO Priced at $4/Share On 1.25M Shares

UBS analyst Thomas Wadewitz assumes Southwest Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) with a Sell rating and announces Price Target of $27.

UBS Assumes Southwest Airlines at Sell, Announces Price Target of $27

TBBB

BBB Foods shares are trading lower. The company reported Q3 financial results.

FLNC

Fluence Energy shares are trading lower after the company reported worse-than-expected Q4 sales results.

MDAI

Spectral AI Reprices  8,433,333 Public Warrants With An Exercise Price Of $11.50 Per Share To $2.75 Per Share; Expects To Receive Up To ~$23M In Net Proceeds

Select Medical shares are trading lower. The company may be moving on continued weakness after Benchmark downgraded the stock from Buy to Hold on Monday.

Citigroup analyst Alicia Yap maintains Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) with a Buy and raises the price target from $3.9 to $4.2.

BZUN

Citigroup Maintains Buy on Baozun, Raises Price Target to $4.2

Trading Ideas

VSEE

VSee Health Shares Resume Trading

Kirby's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEX#NYSE">KEX</a>) short percent of float has fallen 4.95% since its last report. The company recently reported that it has 882 thousand shares sold short, which is 1.73% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.75 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Kirby Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732634121_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Kirby has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Kirby's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Kirby's peer group average for short interest as a percentage of float is 2.71%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(KEX) - Analyzing Kirby's Short Interest

The disconnect between <a href="https://www.benzinga.com/real-estate/24/09/41082529/its-not-a-housing-crisis-but-a-housing-policy-crisis-homebuilders-call-out-roadblocks-as-prices-surg">policymakers&#8217; housing aspirations and market realities </a>continues widening, with October&#8217;s housing starts and permits dropping to recession-level figures despite widespread calls for increased construction.
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<li>This Jeff Bezos-backed startup will allow you to <a href="https://www.benzinga.com/money/bezos-landlord-100-dollars">become a landlord in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.</a></li>
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Recent data from the Census Bureau reveals housing starts fell 3.1% below September&#8217;s revised estimate, landing at a seasonally adjusted annual rate of 1,311,000 units. Building permits declined 0.6% from September, marking a 7.7% drop from October 2023.
The numbers create friction with recent comments from Federal Reserve officials, including Minneapolis Fed President Neel Kashkari, who, according to HousingWire, suggested housing demand remains robust enough to warrant higher mortgage rates. The data tells a different story, with existing home sales hitting their third consecutive year of record lows when adjusted for workforce size.
Trending: Invest in $20+ trillion home equity market today across cities like Austin, Miami, and Los Angeles through a <a href="https://www.benzinga.com/money/nada-cityfunds">unique 5-year term fund targeting a 14-20% IRR with minimums as low as $2,500</a>
Builder behavior offers telling insights into market conditions. HousingWire said construction companies have shown increased optimism when mortgage rates approach 6%, but consistently pull back when rates climb between 6.75% and 7.5%. The pattern extends beyond single-family homes, with multiunit permits already at recession levels.
The market&#8217;s sensitivity to interest rates became evident during a brief period of improved builder confidence when mortgage rates temporarily dipped from 7.5% to 6%. While builders maintain the ability to boost sales through rate buydowns, sustaining rates in the low 6% range has proved challenging.
Looking ahead, the path to increased housing construction faces hurdles. Lower Fed rates could theoretically support land purchases and apartment construction, but those developments require extensive lead time. The <a href="https://www.benzinga.com/top-stories/24/06/39512860/us-desperately-needs-housing-supply-so-why-has-new-home-construction-sunk-to-4-year-lows">current construction slowdown</a> risks exacerbating rent inflation as supply constraints persist.
See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing —<a href="https://www.benzinga.com/money/boxabl"> you can become an investor for $0.80 per share today.</a>
New home sales lag behind levels seen during the 2001 tech recession, highlighting the severity of current market conditions. The reality sharply contradicts predictions from 2021 that anticipated a decade-long construction boom. Instead, rising interest rates have dramatically cooled building activity.
The report said that significant construction growth appears unlikely until mortgage rates stabilize at lower levels and remain there. While the expanding economy and Fed policies may limit how far rates can fall, even a sustained move toward 6% could reinvigorate building activity. For now, "millions of homes will stay unbuilt," said Logan Mohtashami, mortgage and housing ecosystem expert and author of the HousingWire report.&nbsp;
Read Next:
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<li>Commercial real estate has historically outperformed the stock market, and<a href="https://www.benzinga.com/money/marcus-millichap-backed-platform-makes-it-easy-to-invest-in-real-estate"> this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!</a></li>
<li>These five entrepreneurs are worth $223 billion –<a href="https://www.benzinga.com/money/arrived-homes-private-credit-fund"> they all believe in one platform that offers a 7-9% target yield with monthly dividends</a></li>
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Real Estate

'Millions Of Homes Will Stay Unbuilt': What Builders See That Policymakers Don't

Bitcoin&#8216;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) sharp pullback from its record high just under $100,000 has sparked concern among traders, with Standard Chartered&#8216;s Geoffrey Kendrick attributing the correction to several factors, including a reduction in U.S. Treasury term premium and <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42172993/bitcoin-slides-below-95000-analyst-predicts-potential-correction-to-85000">upcoming options expirations.</a>
What Happened: According to Kendrick, the significant reduction in U.S. Treasury term premium following President-elect Donald Trump's <a href="https://www.benzinga.com/news/24/11/42158330/trumps-treasury-secretary-pick-scott-bessent-says-a-global-economic-reordering-is-on-the-way-argues-president-elects-policies-will-lead-to-an-economic-lollapalooza">Treasury Secretary announcement</a> triggered Bitcoin's decline.
In a note sent to Benzinga, he explained that Bitcoin is often viewed as a <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/41050565/bitcoin-shines-as-hedge-against-major-geopolitical-events-says-research-firm">hedge against traditional financial issues</a>, and lower term premiums undermine its appeal in this role.
Data from the New York Fed, which tracks term premium movements, supports the connection between recent Treasury market activity and the crypto market&#8217;s performance.
"Bitcoin thrives on uncertainty in traditional finance. When Treasury term premiums drop, that hedge utility temporarily diminishes," Kendrick noted.
Further adding to the downward pressure are the substantial monthly options expiries scheduled for Friday. 
Data from Deribit highlights that BTC options with strike prices ranging from $85,000 to $100,000 account for over 18,000 BTC in open interest. 
Historically, options expirations have constrained price movement, with traders positioning themselves around these key levels, creating a magnet effect on spot prices.
Kendrick predicts a potential drop below $88,700—the average purchase price for ETFs and MicroStrategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) since the U.S. elections. 
This could lead Bitcoin to test its critical support zone between $85,000 and $88,700 before resuming its uptrend.
Despite the retracement, institutional interest remains robust. 
ETFs have recorded inflows of approximately 77,000 BTC since <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41746095/what-the-election-outcome-means-for-bitcoins-near-term-price-action">the U.S. elections</a>, while MicroStrategy has acquired an additional 134,000 BTC.
However, Kendrick cautions that the recent influx of institutional buying at an average price of $88,700 could serve as a temporary ceiling until broader market dynamics shift.
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42189225/trump-threatens-25-tariffs-on-canada-mexico-until-invasion-is-stopped-but-polymarket-traders-arent-convinced">Trump Threatens 25% Tariffs On Canada, Mexico Until &#8216;Invasion&#8217; Is Stopped, But Polymarket Traders Aren&#8217;t Convinced</a>
Why It Matters: Bitcoin&#8217;s pullback has also affected the wider crypto market.
BTC's decline from $98,500 to $93,500 coincided with a dip in overall market capitalization from $3.5 billion to $3.35 billion.
Futures markets saw over $500 million liquidated during the volatility, reflecting heightened risk aversion.
Kendrick maintained his year-end target of $125,000 for Bitcoin and a <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41851865/bitcoin-to-200000-ethereum-to-10000-and-crypto-market-cap-to-4x-by-end-of-2025-says-standard-chartered">2025 projection of $200,000</a>.
He sees the current retracement as a necessary correction, driven by macroeconomic factors and technical market events.
"We are still in a structural bull market," Kendrick emphasized. "Once these short-term headwinds subside, Bitcoin is well-positioned to resume its upward trajectory."
Price Action: According to CoinGecko <a href="https://www.coingecko.com/en/coins/bitcoin">data</a>, Bitcoin is currently trading at $93,440, down 1.5% for the day after making a high of $99,645 on Nov. 22.
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Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$BTC

MSTR

Bitcoin Correction Could Go As Deep As $88,700 But $125,000 Year-End Target Remains In Play, Says Standard Chartered

Exicure's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XCUR#NYSE">XCUR</a>) short percent of float has risen 73.04% since its last report. The company recently reported that it has 31 thousand shares sold short, which is 1.99% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.0 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Exicure Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732634115_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Exicure has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Exicure's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Exicure's peer group average for short interest as a percentage of float is 5.47%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

XCUR

How Is The Market Feeling About Exicure?

Rockwell Automation's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROK#NYSE">ROK</a>) short percent of float has fallen 10.0% since its last report. The company recently reported that it has 2.07 million shares sold short, which is 2.07% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.06 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Rockwell Automation Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732634110_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Rockwell Automation has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Rockwell Automation's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Rockwell Automation's peer group average for short interest as a percentage of float is 9.38%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into Rockwell Automation's Recent Short Interest

LexinFintech shares are trading higher after the company announced its board approved an amendment for a dividend policy to increase the payout ratio. Also, the company reported Q3 financial results.

STLA

Shares of auto-related companies are trading lower after President-elect Trump announced plans to implement tariffs on goods from Mexico, Canada and China.

TD Cowen analyst John Blackledge initiates coverage on Pinterest (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>) with a Buy rating and announces Price Target of $38.

PINS

TD Cowen Initiates Coverage On Pinterest with Buy Rating, Announces Price Target of $38

ASPI

ASP Isotopes shares are trading lower following a short report on the stock.

Paradox Interactive reports Q1 results

Paradox Interactive AB (publ) (PRXXF) Q1 2024 Earnings Call Transcript

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
While the overall market continues to reach new highs, gaming stocks have largely lagged behind. This trend can be attributed to brutal competition prevalent within the gaming industry, with both major studios and independent developers fiercely fighting for market share and gamers&rsquo; available playtime. This cutthroat industry environment has damped growth and profitability prospects for many companies, leaving many gaming stocks undervalued.



However, this also presents significant opportunities for investors seeking exposure in the space. In fact, despite certain challenges, the gaming industry remains robust, with solid demand and a growing global audience. Many companies, unfairly penalized by market conditions, possess solid fundamentals and promising futures. Some of them also trade at rather attractive levels, offering significant upside potential as they recover and thrive in an expanding market.



In this article, I will present three gaming stocks that seem too cheap to ignore. Each of these companies has fallen victim to the broader industry&rsquo;s sell-off but holds the potential for substantial gains. Let&rsquo;s take a closer look!



<h2>Paradox Interactive AB (PRXXF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/videogames1600c-300x169.jpg" alt=""><div>Source: Shutterstock</div></div>In my view, one of the most promising and undervalued gaming stocks today is Paradox Interactive (OTCMKTS:<a href="https://investorplace.com/stock-quotes/prxxf-stock-quote/">PRXXF</a>). This Sweden-based company is a renowned player in the gaming industry, particularly celebrated for its niche strategy and simulation games. It owns titles such as Crusader Kings, Europa Universalis, Stellaris and Cities: Skylines. These games are known for their depth, sophistication and high replay value, qualities that are highly appreciated by their fans. Combined with its steady release schedule, Paradox Interactive tends to enjoy predictable and steady revenue streams.



Despite its robust track record in recent years, Paradox Interactive stock is now trading at its 2018 levels. The fact the stock has declined by a significant 44% over the past year seems rather puzzling, especially given its sustained growth and top-tier profitability. To elaborate, Paradox has increased its revenues at a <a href="https://app.koyfin.com/share/01d01c471f">compound annual growth rate (CAGR) of 18.6%</a>. Further, its margins have historically been industry-leading, with net margins landing at a juicy 20% last year. With its ongoing momentum set to last and shares trading at a forward price-to-earnings (P/E) ratio of 23.6x, Paradox&rsquo;s investment case is quite compelling.



<h2>Capcom (CCOEY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/videogames1600d-300x169.jpg" alt="Metaverse stock. gaming cryptos"><div>Source: Shutterstock</div></div>Another overseas gaming stock with strong prospects from its current share price levels is Capcom (OTCMKTS:<a href="https://investorplace.com/stock-quotes/ccoey-stock-quote/">CCOEY</a>). The Japanese company has a legendary reputation in the gaming industry for its iconic franchises and usually high-quality titles. Its intellectual property (IP) includes series such as Resident Evil, Street Fighter, Monster Hunter, and Mega Man, which have captivated generations of gamers worldwide.



In recent years, Capcom&rsquo;s strategy has significantly accelerated revenue growth through several key initiatives. One major approach has been remastering and re-releasing classic titles. This has not only pleased longtime fans but also drew younger gamers who missed these games at their initial launch. It converts them into new fans and drives future sales prospects. Furthermore, Capcom has pursued smart partnerships and collaborations, such as Resident Evil x Fortnite and Devil May Cry x Netflix. This expanded its audience and created valuable cross-promotional opportunities.



The strategy resulted in Capcom&rsquo;s revenue and net income increasing at a CAGR of <a href="https://app.koyfin.com/share/ac96e4fa41">8.8% and 28.2%</a> over the past year. In the meantime, the company has a substantial net cash position of <a href="https://app.koyfin.com/share/d03207a39f">$747 million</a>, which should provide a notable margin of safety. While the stock might not seem too cheap at first glance, trading at about 30x last year&rsquo;s earnings per share (EPS), Capcom&rsquo;s potential for outsized earnings growth over the medium term remains robust, overshadowing this multiple.



<h2>Take-Two Interactive (TTWO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/ttwo1600-300x169.jpg" alt="an image of the box for Take Two's (TTWO) Red Dead Redemption 2 for the PlayStation 4"><div>Source: Thomas Pajot / Shutterstock.com</div></div>Last but not least, Take-Two Interactive (NASDAQ:<a href="https://investorplace.com/stock-quotes/ttwo-stock-quote/">TTWO</a>) seems like a promising bet in the gaming industry moving forward. The company is renowned for developing some of the highest-quality AAA titles, including iconic franchises such as Grand Theft Auto, Red Dead Redemption, and NBA 2K. These titles are critically acclaimed, and while Take-Two&rsquo;s releases are not too frequent, its games have a massive, dedicated player base that ensures robust sales over extended periods.



This approach has proven successful as each release typically results in notable revenue and long-term player engagement. Both Grand Theft Auto V and Red Dead Redemption 2, continue to generate significant sales years after their initial launches.



Looking ahead, Take-Two&rsquo;s growth prospects seem incredibly promising, particularly with the anticipated release of Grand Theft Auto VI. For context, the Grand Theft Auto series is one of the best-selling video game franchises of all time and the next installment, which has been under development for about a decade, is expected to break sales records. It should drive considerable revenue growth for years to come.



Therefore, the stock currently appears incredibly expensive <a href="https://app.koyfin.com/share/5f41491c95">at a forward P/E ratio over 60x</a>. This valuation reflects Wall Street&rsquo;s expectations for explosive revenue and EPS growth following the eagerly awaited release of GTA VI. The anticipated success of this blockbuster title is likely to justify the high multiple over the medium term. It suggests that Take-Two remains an undervalued gaming stock at its current levels.



On the date of publication, Nikolaos Sismanis did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;
<div>Nikolaos Sismanis is a professional research analyst with five years of experience in the field of equity research and financial modeling. Nikolaos has authored over 1,000 stock-related articles that focus on uncovering deep value opportunities, identifying growth stocks at reasonable valuations, and shining a spotlight on overlooked international equities.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/the-3-most-undervalued-gaming-stocks-to-buy-in-july-2024/">The 3 Most Undervalued Gaming Stocks to Buy in July 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 3 Most Undervalued Gaming Stocks to Buy in July 2024

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