In the latest trading session, Activision Blizzard (ATVI) closed at $50.83, marking a +1.72% move from the previous day. This move outpaced the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.8%.
Prior to today's trading, shares of the maker of "Call of Duty" and other video games had gained 3.67% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.15% and the S&P 500's loss of 2.09% in that time.
Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be February 12, 2019. The company is expected to report EPS of $1.30, up 38.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.05 billion, up 15.69% from the year-ago period.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. ATVI is currently a Zacks Rank #3 (Hold).
In terms of valuation, ATVI is currently trading at a Forward P/E ratio of 17.98. This valuation marks a discount compared to its industry's average Forward P/E of 19.39.
Investors should also note that ATVI has a PEG ratio of 1.31 right now. 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. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.38 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% 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.
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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