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Activision Blizzard, Inc (ATVI) Outpaces Stock Market Gains: What You Should Know

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Activision Blizzard, Inc (ATVI - Free Report) closed the most recent trading day at $91.87, moving +1.53% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.23%.

Coming into today, shares of the company had lost 11.5% in the past month. In that same time, the Consumer Discretionary sector gained 3.2%, while the S&P 500 gained 0.18%.

Investors will be hoping for strength from ATVI as it approaches its next earnings release. The company is expected to report EPS of $0.70, up 20.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 16.52% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.67 per share and revenue of $8.53 billion, which would represent changes of +5.76% and +1.37%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ATVI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.27% higher. ATVI is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that ATVI has a Forward P/E ratio of 24.68 right now. For comparison, its industry has an average Forward P/E of 23.1, which means ATVI is trading at a premium to the group.

Investors should also note that ATVI has a PEG ratio of 1.36 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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