Activision Blizzard, Inc (ATVI) Gains But Lags Market: What You Should Know
Activision Blizzard, Inc (ATVI) closed at $77.94 in the latest trading session, marking a +1.9% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the company had lost 1.92% in the past month. In that same time, the Consumer Discretionary sector lost 6.59%, while the S&P 500 lost 4.31%.
Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release. In that report, analysts expect Activision Blizzard, Inc to post earnings of $0.45 per share. This would mark a year-over-year decline of 50.55%. Our most recent consensus estimate is calling for quarterly revenue of $1.52 billion, down 20.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.82 per share and revenue of $7.77 billion, which would represent changes of -24.19% and -7.05%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Activision Blizzard, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 5.43% lower. Activision Blizzard, Inc is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Activision Blizzard, Inc is currently trading at a Forward P/E ratio of 27.11. This represents a premium compared to its industry's average Forward P/E of 15.91.
Also, we should mention that ATVI has a PEG ratio of 1.87. 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 1.59 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 86, which puts it in the top 34% 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.
To follow ATVI in the coming trading sessions, be sure to utilize Zacks.com.
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