Activision Blizzard (ATVI - Free Report) closed the most recent trading day at $51.02, moving +0.53% from the previous trading session. This move lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.
Coming into today, shares of the maker of "Call of Duty" and other video games had lost 24.79% in the past month. In that same time, the Consumer Discretionary sector gained 1.73%, while the S&P 500 gained 1.21%.
ATVI will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect ATVI to post earnings of $1.31 per share. This would mark year-over-year growth of 39.36%. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 15.78% from the prior-year quarter.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $2.61 per share and revenue of $7.47 billion. These results would represent year-over-year changes of +14.47% and +4.43%, respectively.
Investors might also notice recent changes to analyst estimates for ATVI. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.15% lower. ATVI is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ATVI is currently trading at a Forward P/E ratio of 19.45. This valuation marks a discount compared to its industry's average Forward P/E of 20.54.
Meanwhile, ATVI's PEG ratio is currently 1.42. 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 1.42 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 171, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.