Activision Blizzard, Inc (ATVI) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $76.25, marking a -0.64% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.84%.
Heading into today, shares of the company had gained 1.03% over the past month, outpacing the Consumer Discretionary sector's loss of 4.7% and the S&P 500's loss of 2% in that time.
Wall Street will be looking for positivity from Activision Blizzard, Inc as it approaches its next earnings report date. On that day, Activision Blizzard, Inc is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 55.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, up 27.07% from the year-ago period.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $9.53 billion. These results would represent year-over-year changes of +15.54% and +11.98%, respectively.
Investors should also note any recent changes to analyst estimates for Activision Blizzard, Inc. Recent revisions tend to reflect the latest near-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. 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.
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 0.52% lower. Activision Blizzard, Inc is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Activision Blizzard, Inc is currently trading at a Forward P/E ratio of 19.46. This represents a premium compared to its industry's average Forward P/E of 15.21.
It is also worth noting that ATVI currently has a PEG ratio of 2.05. 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 2.05 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 244, which puts it in the bottom 4% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report