Activision Blizzard, Inc (ATVI) Stock Sinks As Market Gains: What You Should Know
Activision Blizzard, Inc (ATVI) closed at $75.94 in the latest trading session, marking a -0.11% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the company had lost 5.29% over the past month, outpacing the Consumer Discretionary sector's loss of 11.32% and the S&P 500's loss of 9.94% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, down 9.2% from the year-ago period.
ATVI's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $8.02 billion. These results would represent year-over-year changes of -23.66% and -4.03%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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 0.9% higher. Activision Blizzard, Inc is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 26.76 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.55.
We can also see that ATVI currently has a PEG ratio of 2.82. 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 1.79 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 99, which puts it in the top 40% 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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