In the latest trading session, Activision Blizzard (ATVI - Free Report) closed at $46.52, marking a -0.17% move from the previous day. This change was narrower than the S&P 500's daily loss of 3.24%. At the same time, the Dow lost 3.1%, and the tech-heavy Nasdaq lost 3.8%.
Coming into today, shares of the maker of "Call of Duty" and other video games had lost 32.45% in the past month. In that same time, the Consumer Discretionary sector gained 0.02%, while the S&P 500 gained 2.73%.
Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $1.31, up 39.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 15.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $7.47 billion. These totals would mark changes of +14.47% and +4.43%, respectively, from last year.
Any recent changes to analyst estimates for ATVI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ATVI has a Forward P/E ratio of 17.83 right now. For comparison, its industry has an average Forward P/E of 20.85, which means ATVI is trading at a discount to the group.
We can also see that ATVI currently has a PEG ratio of 1.3. 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. ATVI's industry had an average PEG ratio of 1.3 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 171, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.