In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $76.76, marking a -1.75% move from the previous day. This change was narrower than the S&P 500's daily loss of 4.32%. Elsewhere, the Dow lost 3.94%, while the tech-heavy Nasdaq lost 0.35%.
Heading into today, shares of the company had lost 3.22% over the past month, outpacing the Consumer Discretionary sector's loss of 5.33% and the S&P 500's loss of 3.75% in that time.
Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.53, down 26.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.71 billion, down 8.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $8.03 billion. These totals would mark changes of -23.66% and -3.86%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Activision Blizzard, Inc. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.01% 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 27.48. For comparison, its industry has an average Forward P/E of 16.17, which means Activision Blizzard, Inc is trading at a premium to the group.
Meanwhile, ATVI's PEG ratio is currently 2.89. 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 was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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