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

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Activision Blizzard, Inc (ATVI - Free Report) closed at $94.02 in the latest trading session, marking a +1.75% move from the prior day. This move outpaced the S&P 500's daily loss of 0.09%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 0.6%.

Coming into today, shares of the company had lost 2.84% in the past month. In that same time, the Consumer Discretionary sector lost 2.37%, while the S&P 500 gained 4.45%.

Wall Street will be looking for positivity from ATVI as it approaches its next earnings report date. The company is expected to report EPS of $0.71, up 22.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 16.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.67 per share and revenue of $8.53 billion. These totals would mark changes of +5.76% and +1.37%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ATVI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. ATVI currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ATVI has a Forward P/E ratio of 25.16 right now. For comparison, its industry has an average Forward P/E of 23.9, which means ATVI is trading at a premium to the group.

Investors should also note that ATVI has a PEG ratio of 1.38 right now. 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. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.69 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 71, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ATVI in the coming trading sessions, be sure to utilize Zacks.com.


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