In the latest trading session, Activision Blizzard (ATVI - Free Report) closed at $42.01, marking a +1.42% move from the previous day. This move outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the maker of "Call of Duty" and other video games had lost 5.78% over the past month. This has lagged the Consumer Discretionary sector's gain of 2.41% and the S&P 500's gain of 1.81% in that time.
Investors will be hoping for strength from ATVI as it approaches its next earnings release. The company is expected to report EPS of $0.19, down 45.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.24 billion, down 10.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.98 per share and revenue of $6.49 billion. These totals would mark changes of -17.27% and -10.64%, respectively, from last year.
Any recent changes to analyst estimates for ATVI should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. Within the past 30 days, our consensus EPS projection has moved 10.93% lower. ATVI is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note ATVI's current valuation metrics, including its Forward P/E ratio of 18.41. Its industry sports an average Forward P/E of 19.17, so we one might conclude that ATVI is trading at a discount comparatively.
It is also worth noting that ATVI currently has a PEG ratio of 1.74. 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 industry currently had an average PEG ratio of 1.69 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 164, putting it in the bottom 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.