In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $76.37, marking a -0.87% move from the previous day. This change was narrower than the S&P 500’s 2.49% loss on the day. Elsewhere, the Dow lost 2.25%, while the tech-heavy Nasdaq lost 0.25%.
Coming into today, shares of the company had gained 3.62% in the past month. In that same time, the Consumer Discretionary sector gained 1.23%, while the S&P 500 gained 1.14%.
Wall Street will be looking for positivity from Activision Blizzard, Inc as it approaches its next earnings report date. The company is expected to report EPS of $1.50, up 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.23 billion, up 29.68% from the prior-year quarter.
ATVI’s full-year Zacks Consensus Estimates are calling for earnings of $3.04 per share and revenue of $8.18 billion. These results would represent year-over-year changes of -18.28% and -2.14%, respectively.
It is also important to note the recent changes to analyst estimates for Activision Blizzard, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.38% higher within the past month. Activision Blizzard, Inc is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 25.35 right now. This represents a premium compared to its industry’s average Forward P/E of 16.44.
Investors should also note that ATVI has a PEG ratio of 2.67 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 was holding an average PEG ratio of 1.57 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 94, putting 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.
To follow ATVI in the coming trading sessions, be sure to utilize Zacks.com.
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