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In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $78.70, marking a +0.79% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%.
Prior to today's trading, shares of the company had gained 7.24% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.24% and the S&P 500's gain of 4.28% in that time.
Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be November 2, 2021. In that report, analysts expect ATVI to post earnings of $0.71 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $1.88 billion, up 6.31% from the year-ago period.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $8.79 billion. These results would represent year-over-year changes of +11.24% and +4.37%, respectively.
Any recent changes to analyst estimates for ATVI should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.78% higher. ATVI currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ATVI currently has a Forward P/E ratio of 20.25. For comparison, its industry has an average Forward P/E of 20.25, which means ATVI is trading at a no noticeable deviation to the group.
Investors should also note that ATVI has a PEG ratio of 1.31 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 2.4 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 206, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
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