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Activision Blizzard, Inc (ATVI) Gains As Market Dips: What You Should Know

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In the latest trading session, Activision Blizzard, Inc (ATVI - Free Report) closed at $93.28, marking a +0.76% move from the previous day. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.09%.

Wall Street will be looking for positivity from ATVI as it approaches its next earnings report date. On that day, ATVI is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 20.69%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 16.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.66 per share and revenue of $8.53 billion. These totals would mark changes of +5.48% and +1.33%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ATVI. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. ATVI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ATVI is holding a Forward P/E ratio of 25.39. This valuation marks a premium compared to its industry's average Forward P/E of 23.48.

Meanwhile, ATVI's PEG ratio is currently 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATVI's industry had an average PEG ratio of 1.64 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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