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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 the most recent trading day at $78.08, moving +1.17% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.37%.

Coming into today, shares of the company had gained 5.68% in the past month. In that same time, the Consumer Discretionary sector lost 1.97%, while the S&P 500 gained 2.13%.

Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be November 2, 2021. In that report, analysts expect ATVI to post earnings of $0.71 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.88 billion, up 6.31% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.86 per share and revenue of $8.79 billion, which would represent changes of +11.24% and +4.37%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ATVI. 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.

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 0.78% higher. ATVI is currently a Zacks Rank #3 (Hold).

In terms of valuation, ATVI is currently trading at a Forward P/E ratio of 20.02. This represents a no noticeable deviation compared to its industry's average Forward P/E of 20.02.

Investors should also note that ATVI has a PEG ratio of 1.29 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 2.37 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 206, which puts it in the bottom 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.

To follow ATVI in the coming trading sessions, be sure to utilize Zacks.com.


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