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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 the most recent trading day at $84.33, moving -0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the company had gained 9.85% over the past month, outpacing the Consumer Discretionary sector's loss of 2.74% and the S&P 500's gain of 0.25% in that time.
Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.59, up 55.26% from the prior-year quarter. 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. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Activision Blizzard, Inc is currently trading at a Forward P/E ratio of 21.4. This represents a premium compared to its industry's average Forward P/E of 15.48.
Also, we should mention that ATVI has a PEG ratio of 2.25. 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 3.34 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Activision Blizzard, Inc (ATVI) Stock Sinks As Market Gains: What You Should Know
Activision Blizzard, Inc (ATVI - Free Report) closed the most recent trading day at $84.33, moving -0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the company had gained 9.85% over the past month, outpacing the Consumer Discretionary sector's loss of 2.74% and the S&P 500's gain of 0.25% in that time.
Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.59, up 55.26% from the prior-year quarter. 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. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Activision Blizzard, Inc is currently trading at a Forward P/E ratio of 21.4. This represents a premium compared to its industry's average Forward P/E of 15.48.
Also, we should mention that ATVI has a PEG ratio of 2.25. 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 3.34 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.