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We recently published a list of 10 Stocks Outperform Broader Market on Wednesday. In this article, we are going to take a look at where Playtika Holding Corp. (NASDAQ:PLTK) stands against other stocks that outperform broader market on Wednesday.
The stock market finished in the red territory on Wednesday as investors sold off positions to mitigate risks from a fresh round of tariffs due in the next few days.
The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.
According to President Donald Trump, all cars made outside of the US would be slapped with a 25-percent tariff beginning April 2.
Meanwhile, let us take a look at the 10 companies across mixed sectors that defied a broader market downturn, having registered modest to strong gains during the trading session.
To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.
A close-up of a hand holding a mobile device with a gaming app open on the screen.
Playtika Holding Corp. (NASDAQ:PLTK)
Playtika Holding soared by 20.45 percent on Wednesday to finish at $5.30 apiece as investors cheered a rating upgrade for the company.
On Wednesday, Bank of America Securities upgraded its rating for PLTK to Buy from Underperform previously and raised the price target to $6.5 from $6 previously.
The new price target represents a 22.6-percent upside from its latest closing price.
According to the report, PLTK boasts the industry’s highest profitability with 30 percent EBITDA margins, the industry’s largest direct-to-consumer platform, as well as three of the largest and longest-running franchises in the mobile gaming industry.
“It operates within the mature, but still growing mobile gaming industry, which we expect to grow at least 4% Y/Y for the foreseeable future,” the report said.
PLTK is an Israel-based company specializing in the development and publication of mobile games.
Overall, PLTK ranks 1st on our list of stocks that outperform broader market on Wednesday. While we acknowledge the potential of PLTK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as PLTK but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.