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Activision Blizzard, Inc (ATVI) Stock Sinks As Market Gains: What You Should Know

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Activision Blizzard, Inc closed the most recent trading day at $71.76, moving -0.51% from the previous trading session. This move lagged the S&P 500's daily gain of 2.65%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 0.24%.

Heading into today, shares of the company had lost 5.12% over the past month, outpacing the Consumer Discretionary sector's loss of 11.86% and the S&P 500's loss of 8.99% in that time.

Activision Blizzard, Inc will be looking to display strength as it nears its next earnings release, which is expected to be November 7, 2022. On that day, Activision Blizzard, Inc is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 27.78%. Meanwhile, our latest consensus estimate is calling for revenue of $1.71 billion, down 9.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $8.03 billion, which would represent changes of -23.66% and -3.89%, respectively, from the prior year.

Investors might also notice 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, 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 0.19% higher. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Activision Blizzard, Inc has a Forward P/E ratio of 25.39 right now. For comparison, its industry has an average Forward P/E of 16.03, which means Activision Blizzard, Inc is trading at a premium to the group.

Investors should also note that ATVI has a PEG ratio of 2.67 right now. 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 industry currently had an average PEG ratio of 1.85 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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