Activision Blizzard (ATVI - Free Report) closed the most recent trading day at $46.57, moving -0.49% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 1.15%, while the tech-heavy Nasdaq added 0.77%.
Heading into today, shares of the maker of "Call of Duty" and other video games had lost 10.96% over the past month, lagging the Consumer Discretionary sector's loss of 10.24% and the S&P 500's loss of 9.35% in that time.
Wall Street will be looking for positivity from ATVI as it approaches its next earnings report date. This is expected to be February 14, 2019. On that day, ATVI is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 45.74%. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 15.78% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for ATVI. These recent revisions tend to reflect the evolving nature of short-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.
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 0.12% lower within the past month. 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 17.91 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.79.
Meanwhile, ATVI's PEG ratio is currently 1.31. 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 1.31 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 104, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.