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Activision Blizzard, Inc (ATVI) Gains But Lags Market: What You Should Know
Activision Blizzard, Inc (ATVI - Free Report) closed the most recent trading day at $79.75, moving +0.52% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Prior to today's trading, shares of the company had gained 2.28% over the past month. This has outpaced the Consumer Discretionary sector's loss of 7.25% and the S&P 500's loss of 2.95% in that time.
Investors will be hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release. The company is expected to report EPS of $0.59, up 55.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.88 billion, up 27.07% from the year-ago period.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $9.53 billion. These results would represent year-over-year changes of +15.54% and +11.98%, respectively.
It is also important to note the recent changes to analyst estimates for Activision Blizzard, Inc. 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 0.17% lower within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
Investors should also note Activision Blizzard, Inc's current valuation metrics, including its Forward P/E ratio of 20.12. For comparison, its industry has an average Forward P/E of 15.4, 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 2.12. 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 was holding an average PEG ratio of 3.29 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.