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Activision Blizzard, Inc (ATVI) Outpaces Stock Market Gains: What You Should Know

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Activision Blizzard, Inc (ATVI) closed at $79.65 in the latest trading session, marking a +0.53% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the company had gained 1.66% over the past month, lagging the Consumer Discretionary sector's gain of 7.82% and the S&P 500's gain of 5.55% in that time.

Investors will be hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release, which is expected to be August 1, 2022. On that day, Activision Blizzard, Inc is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 49.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.53 billion, down 20.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.83 per share and revenue of $7.8 billion, which would represent changes of -23.92% and -6.58%, respectively, from the prior year.

Any recent changes to analyst estimates for Activision Blizzard, Inc should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 0.43% higher. Activision Blizzard, Inc is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Activision Blizzard, Inc's current valuation metrics, including its Forward P/E ratio of 27.96. For comparison, its industry has an average Forward P/E of 15.94, which means Activision Blizzard, Inc is trading at a premium to the group.

Meanwhile, ATVI's PEG ratio is currently 1.93. 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 1.61 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 188, putting it in the bottom 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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