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In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $90.27, marking a +1.8% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.98%. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.5%.
Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be February 4, 2021. The company is expected to report EPS of $1.18, down 4.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.82 billion, up 4.31% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ATVI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 1.01% lower within the past month. ATVI is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ATVI has a Forward P/E ratio of 26.19 right now. Its industry sports an average Forward P/E of 26.19, so we one might conclude that ATVI is trading at a no noticeable deviation comparatively.
Investors should also note that ATVI has a PEG ratio of 1.64 right now. 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 2.15 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.