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Activision Blizzard, Inc (ATVI) Gains But Lags Market: What You Should Know

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In the latest trading session, Activision Blizzard, Inc (ATVI - Free Report) closed at $77.36, marking a +0.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.83%.

Heading into today, shares of the company had lost 3.74% over the past month, outpacing the Consumer Discretionary sector's loss of 4.98% and lagging the S&P 500's loss of 3.68% in that time.

Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be November 2, 2021. The company is expected to report EPS of $0.71, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.88 billion, up 6.4% from the prior-year quarter.

ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.85 per share and revenue of $8.78 billion. These results would represent year-over-year changes of +10.95% and +4.34%, respectively.

Any recent changes to analyst estimates for ATVI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. ATVI is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note ATVI's current valuation metrics, including its Forward P/E ratio of 20.1. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 20.1.

Also, we should mention that ATVI has a PEG ratio of 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.3 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 180, which puts it in the bottom 30% 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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