Activision Blizzard, Inc closed the most recent trading day at $79.26, moving +0.21% from the previous trading session. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.87%, and the tech-heavy Nasdaq gained 2.77%.
Coming into today, shares of the company had gained 3.01% in the past month. In that same time, the Consumer Discretionary sector lost 8.51%, while the S&P 500 lost 5.06%.
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 $0.59 per share. This would mark year-over-year growth of 55.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, up 27.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.94 per share and revenue of $9.53 billion. These totals would mark changes of +15.54% and +11.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Activision Blizzard, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 20.06 right now. For comparison, its industry has an average Forward P/E of 15.25, which means Activision Blizzard, Inc is trading at a premium to the group.
We can also see that ATVI currently has a PEG ratio of 2.11. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 3.21 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% 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.