In the latest trading session, Activision Blizzard, Inc (
ATVI Quick Quote ATVI - Free Report) closed at $80.83, marking a -0.25% move from the previous day. This change lagged the S&P 500's daily gain of 2.57%. Meanwhile, the Dow gained 2%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the company had gained 1% over the past month. This has outpaced the Consumer Discretionary sector's loss of 11.25% and the S&P 500's loss of 7.68% 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 $0.71 per share. This would mark a year-over-year decline of 15.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, down 12.86% from the prior-year quarter.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.59 per share and revenue of $8.57 billion. These results would represent year-over-year changes of -3.49% and +2.54%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.69% higher within the past month. Activision Blizzard, Inc is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 22.58 right now. Its industry sports an average Forward P/E of 17.33, so we one might conclude that Activision Blizzard, Inc is trading at a premium comparatively.
It is also worth noting that ATVI currently has a PEG ratio of 1.56. 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 2.25 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 170, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.