Everywhere you go you see it. Pre-teens to young adults hunched over a smartphone furiously tapping away at the keypad, often with headphones on to add to the overall frantic picture. In many cases what they are doing is playing mobile video games that are known as “freemium” games. They cost nothing or close to nothing to download, but they often have items within the game that can be purchased to enhance the game or move it to a new platform or level. A new analyst research report from Cowen’s August Casual Digital Gaming Monthly “CDGM” survey continues to suggest that the mobile gaming space has some clear leadership.

The analyst team also thinks that the sector will consolidate, as rising customer acquisition costs heighten barriers to entry. The report indicates that the winners will be companies with differentiated product portfolios.

Four stocks are rated Outperform at Cowen, and aggressive investors looking to cash-in on what may continue to be long-term entertainment home run should consider the top industry leaders as an investment. Two of these stocks have price targets that could imply up to a double if those targets are achieved.

Activision Blizzard Inc. (NASDAQ: ATVI) is a big player with teens, whether it be on gaming consoles or mobile. The company’s Hearthstone: Heroes of Warcraft just recently exited the top-20 Mobile (iPhone, iPad and Google Play) charts. In addition, top console winners like this summer’s Call of Duty: Advanced Warfare, another huge hit in the Call of Duty franchise, has propelled earnings for the industry powerhouse.

Activision investors are paid a 0.9% dividend. The Cowen price target for the stock is posted at $23, which may be subject to review and a boost higher. The Thomson/First Call consensus target for the stock is $26.19. Shares closed trading on Thursday at $23.79.

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Electronic Arts Inc. (NASDAQ: EA) is another leading game developer that should benefit from not only the continuing rise in new console sales, but the rising trend of mobile gaming. The company produces top-selling games and related content and services under the EA brand in various categories, including action-adventure, role-playing, racing and first-person shooter games.

EA is very well known for its sports games like Madden Football. The company has made the move into mobile play by adapting many of the top franchise titles, which have been popular for years, into the mobile arena. Cowen has a $44 price target for the stock, and the consensus objective is at $41.79. Shares closed Thursday at $37.36.

Glu Mobile Inc. (NASDAQ: GLUU) is a top mobile gaming stock to buy at Cowen and remains one of the firm’s top investment ideas going forward. The company is now reaping the success of the moves that it made in its past product cycle to monetize its games in a better and more efficient manner. Its strategy of focusing on leveraging platform strength and creating long-term gaming franchises has proved profitable.

The recent acquisition of Cie Games has added new product to the line-up, like Racing Rivals, to go along with the fantastic success of the Kim Kardashian: Hollywood game, which was a summer blockbuster. Glu’s rankings remained unchanged on the iPhone at #4, decreased on iPad from #14 to #16 and gained on Google Play from #10 to #5. The Cowen price target is $10, and the consensus target is $7.92. The stock closed at $5.02. A trade up to the Cowen target would be a gigantic 97% gain for investors.

King Digital Entertainment PLC (NYSE: KING) has tortured investors with everything from a lousy IPO to a huge special dividend return of capital that crushed the share price. The fact of the matter is the company’s numbers speak for themselves: Mobile aggregate share: #1, unchanged from last month. iPhone: Four titles in top 20, unchanged from last month; #1 top-grossing publisher, up from #2 last month. iPad: Four titles in top 20, unchanged from last month; #2 top-grossing publisher, unchanged from last month. Google Play: Four titles in top 20, unchanged from last month; #1 top-grossing publisher, unchanged from last month. Facebook: Three titles in top 20 grossing games, unchanged from last month.

The Candy Crush saga inventor is continuing to put out solid new product and is remaining high on the boards with consistent mobile play. The ex-dividend date for the huge 0.465 special dividend is Sept. 26. The Cowen price target for this very complicated stock is a gigantic $27. The consensus target is much lower at $18. Shares closed trading on Thursday at $12.99. Trading to the target would be a huge 100%+ win for investors.

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The mobile gaming trend is not going away anytime soon. With a wide demographic of players, and the sheer fact that many of the games cost nothing to download, almost guarantees that future participation levels may continue to not only maintain current levels, but spike even higher. Good news for investors.

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