Activision Blizzard, Inc (ATVI) closed the most recent trading day at $84.33, moving -0.07% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the company had gained 9.85% over the past month, outpacing the Consumer Discretionary sector’s loss of 2.74% and the S&P 500’s gain of 0.25% 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 $0.59, up 55.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, up 27.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.94 per share and revenue of $9.53 billion. These totals would mark changes of +15.54% and +11.98%, respectively, from last year.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Activision Blizzard, Inc is currently trading at a Forward P/E ratio of 21.4. This represents a premium compared to its industry’s average Forward P/E of 15.48.
Also, we should mention that ATVI has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Toys – Games – Hobbies was holding an average PEG ratio of 3.34 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 240, putting it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
