Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Activision Blizzard, Inc (ATVI - Free Report) closed at $78.84, marking a +0.1% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the company had lost 2.83% over the past month, lagging the Consumer Discretionary sector's loss of 2.53% and the S&P 500's gain of 2.67% in that time.

Wall Street will be looking for positivity from Activision Blizzard, Inc as it approaches its next earnings report date. In that report, analysts expect Activision Blizzard, Inc to post earnings of $0.73 per share. This would mark a year-over-year decline of 13.1%. 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 $3.60 per share and revenue of $8.57 billion. These results would represent year-over-year changes of -3.23% and +2.54%, respectively.

It is also important to note the recent changes to analyst estimates for Activision Blizzard, Inc. These revisions help to show the ever-changing nature of near-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. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Activision Blizzard, Inc is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 21.86 right now. This represents a premium compared to its industry's average Forward P/E of 17.57.

It is also worth noting that ATVI currently has a PEG ratio of 1.51. 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. 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 67, which puts it in the top 27% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Activision Blizzard, Inc (ATVI) - free report >>

Published in