In the latest trading session, Activision Blizzard, Inc closed at $85.59, marking a +0.82% move from the previous day. The stock lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Coming into today, shares of the company had gained 9.24% in the past month. In that same time, the Consumer Discretionary sector gained 0.11%, while the S&P 500 gained 2.28%.
Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, up 52.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, up 24.59% from the prior-year quarter.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.96 per share and revenue of $9.55 billion. These results would represent year-over-year changes of +16.13% and +12.14%, respectively.
Investors might also notice 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.
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.
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 0.18% higher within the past month. Activision Blizzard, Inc is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 21.45 right now. This represents a premium compared to its industry's average Forward P/E of 15.61.
Meanwhile, ATVI's PEG ratio is currently 2.26. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 3.58 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 238, 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.