In the latest trading session, Activision Blizzard, Inc (
ATVI Quick Quote ATVI - Free Report) closed at $61.36, marking a -0.21% move from the previous day. This change was narrower than the S&P 500's 1.03% loss on the day. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the company had lost 1.88% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 10.15% and lagged the S&P 500's loss of 0.62% in that time.
Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release. In that report, analysts expect Activision Blizzard, Inc to post earnings of $1.34 per share. This would mark year-over-year growth of 10.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.83 billion, down 7.36% from the year-ago period.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.83 per share and revenue of $8.74 billion. These results would represent year-over-year changes of +10.37% and +3.81%, respectively.
Any recent changes to analyst estimates for Activision Blizzard, Inc should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 remained stagnant. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Activision Blizzard, Inc is currently trading at a Forward P/E ratio of 16.05. For comparison, its industry has an average Forward P/E of 18.36, which means Activision Blizzard, Inc is trading at a discount to the group.
It is also worth noting that ATVI currently has a PEG ratio of 1.04. 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. ATVI's industry had an average PEG ratio of 2.15 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 96, which puts it in the top 38% 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.