Activision Blizzard, Inc (ATVI) Outpaces Stock Market Gains: What You Should Know
Activision Blizzard, Inc (ATVI) closed the most recent trading day at $75.25, moving +0.44% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day.
Coming into today, shares of the company had lost 3.75% in the past month. In that same time, the Consumer Discretionary sector lost 5.34%, while the S&P 500 lost 2.37%.
Wall Street will be looking for positivity from ATVI as it approaches its next earnings report date. This is expected to be November 2, 2021. On that day, ATVI is projected to report earnings of $0.71 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $1.88 billion, up 6.4% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.85 per share and revenue of $8.78 billion. These totals would mark changes of +10.95% and +4.34%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.72% higher. ATVI is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ATVI currently has a Forward P/E ratio of 19.49. For comparison, its industry has an average Forward P/E of 19.49, which means ATVI is trading at a no noticeable deviation to the group.
Meanwhile, ATVI's PEG ratio is currently 1.26. 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. The Toys - Games - Hobbies was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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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