Activision Blizzard, Inc closed at $85.55 in the latest trading session, marking a +0.06% move from the prior day. The stock lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the company had gained 7.76% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.96% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release. In that report, analysts expect Activision Blizzard, Inc to post earnings of $0.58 per share. This would mark year-over-year growth of 52.63%. Meanwhile, our latest consensus estimate is calling for revenue of $1.83 billion, up 23.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.93 per share and revenue of $9.49 billion, which would represent changes of +15.25% and +11.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Activision Blizzard, Inc. These recent revisions tend to reflect the evolving nature of short-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
Investors should also note Activision Blizzard, Inc's current valuation metrics, including its Forward P/E ratio of 21.77. For comparison, its industry has an average Forward P/E of 15.47, which means Activision Blizzard, Inc is trading at a premium to the group.
Meanwhile, ATVI's PEG ratio is currently 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ATVI's industry had an average PEG ratio of 3.65 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 245, putting it in the bottom 3% 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.
To follow ATVI in the coming trading sessions, be sure to utilize Zacks.com.
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Activision Blizzard, Inc (ATVI) Gains But Lags Market: What You Should Know
Activision Blizzard, Inc closed at $85.55 in the latest trading session, marking a +0.06% move from the prior day. The stock lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the company had gained 7.76% over the past month. This has outpaced the Consumer Discretionary sector's gain of 5.96% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release. In that report, analysts expect Activision Blizzard, Inc to post earnings of $0.58 per share. This would mark year-over-year growth of 52.63%. Meanwhile, our latest consensus estimate is calling for revenue of $1.83 billion, up 23.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.93 per share and revenue of $9.49 billion, which would represent changes of +15.25% and +11.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Activision Blizzard, Inc. These recent revisions tend to reflect the evolving nature of short-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Activision Blizzard, Inc currently has a Zacks Rank of #3 (Hold).
Investors should also note Activision Blizzard, Inc's current valuation metrics, including its Forward P/E ratio of 21.77. For comparison, its industry has an average Forward P/E of 15.47, which means Activision Blizzard, Inc is trading at a premium to the group.
Meanwhile, ATVI's PEG ratio is currently 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ATVI's industry had an average PEG ratio of 3.65 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 245, putting it in the bottom 3% 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.
To follow ATVI in the coming trading sessions, be sure to utilize Zacks.com.