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Activision Blizzard, Inc (ATVI) Gains But Lags Market: What You Should Know

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In the latest trading session, Activision Blizzard, Inc closed at $78.88, marking a +0.29% move from the previous day. This change lagged the S&P 500's 0.98% gain on the day.

Coming into today, shares of the company had gained 1.64% in the past month. In that same time, the Consumer Discretionary sector lost 2.59%, while the S&P 500 gained 2.57%.

Investors will be hoping for strength from ATVI as it approaches its next earnings release, which is expected to be November 2, 2021. On that day, ATVI is projected to report earnings of $0.71 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.88 billion, up 6.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.85 per share and revenue of $8.78 billion, which would represent changes of +10.95% and +4.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ATVI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.58% higher within the past month. ATVI is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ATVI's current valuation metrics, including its Forward P/E ratio of 20.43. For comparison, its industry has an average Forward P/E of 20.43, which means ATVI is trading at a no noticeable deviation to the group.

We can also see that ATVI currently has a PEG ratio of 1.32. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.52 based on yesterday's closing prices.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.

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