Video game stocks have crushed the market this year and a top Wall Street firm predicts the sector's strong performance will continue.
Credit Suisse shared its best interactive entertainment picks going into earnings season in a note to clients Monday. Analyst Stephen Ju shared why he is still bullish on the sector long term:
"With the June quarter a relative new-release-lull, we do not have material changes due to product changes, but as our focus remains on the three-pronged secular thesis – 1) adoption of console full game downloads 2) adoption of console microtransactions – driving gross profit dollar expansion due to the increase in monetization 3) expansion of the addressable market with online free to play and mobile."
Here are the top outperform-rated companies in the industry that Ju recommended and his current price targets.