Is Now a Good Time to Buy Nintendo Stock?
Nintendo's (OTC: NTDOY) Switch game system has surpassed 85 million units sold to consumers. It's been a massive success for the Japanese gaming brand, but it's getting more difficult for Nintendo to post strong year-over-year growth rates after more than four years since its launch.
After nearly doubling over the last five years, the stock is currently down 24% in 2021. Video game stocks are out of favor with the market right now, but that could represent an opportunity for long-term investors. Nintendo's valuation is starting to look very enticing as the stock is trading at just 13 times trailing-12-month earnings.
Is Nintendo a steal at these levels, or is it a value trap? Let's first look at near-term growth catalysts.
Source Fool.com
