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Activision Blizzard, Inc (ATVI) Dips More Than Broader Markets: What You Should Know

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Activision Blizzard, Inc (ATVI - Free Report) closed at $96.69 in the latest trading session, marking a -0.87% move from the prior day. This change lagged the S&P 500's daily loss of 0.41%.

Coming into today, shares of the company had gained 4.57% in the past month. In that same time, the Consumer Discretionary sector lost 6.94%, while the S&P 500 gained 5.07%.

Wall Street will be looking for positivity from ATVI as it approaches its next earnings report date. This is expected to be May 4, 2021. The company is expected to report EPS of $0.70, up 20.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.77 billion, up 16.52% from the year-ago period.

ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.67 per share and revenue of $8.53 billion. These results would represent year-over-year changes of +5.76% and +1.37%, respectively.

It is also important to note the recent changes to analyst estimates for ATVI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. ATVI is currently a Zacks Rank #2 (Buy).

Investors should also note ATVI's current valuation metrics, including its Forward P/E ratio of 26.6. This represents a premium compared to its industry's average Forward P/E of 23.25.

Also, we should mention that ATVI has a PEG ratio of 1.46. 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. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.81 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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