Activision Blizzard, Inc (ATVI) Stock Moves -0.51%: What You Should Know
Activision Blizzard, Inc (ATVI) closed the most recent trading day at $77.63, moving -0.51% from the previous trading session. This change was narrower than the S&P 500's 1.08% loss on the day. At the same time, the Dow lost 0.81%, and the tech-heavy Nasdaq gained 0.22%.
Coming into today, shares of the company had gained 1.44% in the past month. In that same time, the Consumer Discretionary sector gained 3.17%, while the S&P 500 gained 1.03%.
Investors will be hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release. On that day, Activision Blizzard, Inc is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 48.35%. Meanwhile, our latest consensus estimate is calling for revenue of $1.54 billion, down 19.76% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.83 per share and revenue of $7.77 billion. These totals would mark changes of -23.92% and -6.95%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 6.76% lower. Activision Blizzard, Inc is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 27.56 right now. This represents a premium compared to its industry's average Forward P/E of 17.01.
Investors should also note that ATVI has a PEG ratio of 1.9 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 1.74 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 86, which puts it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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