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Activision Blizzard, Inc (ATVI) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $77.72, marking a +1.15% move from the previous day. This change lagged the S&P 500's 1.83% gain on the day. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.

Prior to today's trading, shares of the company had lost 4.65% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.87% and the S&P 500's loss of 5.51% in that time.

Wall Street will be looking for positivity from Activision Blizzard, Inc as it approaches its next earnings report date. On that day, Activision Blizzard, Inc is projected to report earnings of $0.53 per share, which would represent a year-over-year decline of 26.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, down 8.98% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $8.03 billion. These totals would mark changes of -23.66% and -3.86%, respectively, from last year.

Investors might also notice 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.01% higher. Activision Blizzard, Inc is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Activision Blizzard, Inc currently has a Forward P/E ratio of 27.02. This represents a premium compared to its industry's average Forward P/E of 15.22.

It is also worth noting that ATVI currently has a PEG ratio of 2.84. 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. ATVI's industry had an average PEG ratio of 1.84 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 66, putting it in the top 27% 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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