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

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Activision Blizzard, Inc (ATVI - Free Report) closed at $80.73 in the latest trading session, marking a -0.11% move from the prior day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.36%.

Prior to today's trading, shares of the company had lost 0.75% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.21% and the S&P 500's gain of 5.64% in that time.

Investors will be hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release. 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.

Investors should also note any recent changes to analyst estimates for Activision Blizzard, Inc. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Activision Blizzard, Inc is currently a Zacks Rank #3 (Hold).

Digging into valuation, Activision Blizzard, Inc currently has a Forward P/E ratio of 22.43. This valuation marks a premium compared to its industry's average Forward P/E of 16.51.

Meanwhile, ATVI's PEG ratio is currently 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATVI's industry had an average PEG ratio of 1.89 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 50, putting it in the top 20% 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.

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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