Activision Blizzard (ATVI) closed the most recent trading day at $46.75, moving +0.52% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the maker of "Call of Duty" and other video games had gained 0.17% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.12% and the S&P 500's gain of 4.87% in that time.
Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be May 2, 2019. In that report, analysts expect ATVI to post earnings of $0.26 per share. This would mark a year-over-year decline of 31.58%. Our most recent consensus estimate is calling for quarterly revenue of $1.24 billion, down 10.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $6.48 billion, which would represent changes of -14.62% and -10.7%, respectively, from the prior year.
Any recent changes to analyst estimates for ATVI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. ATVI is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ATVI is holding a Forward P/E ratio of 20.92. This valuation marks a discount compared to its industry's average Forward P/E of 22.23.
Also, we should mention that ATVI has a PEG ratio of 2.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
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