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

In the latest trading session, Activision Blizzard, Inc (ATVI) closed at $91.31, marking a -1.29% move from the previous day. This move lagged the S&P 500's daily gain of 0.6%. At the same time, the Dow added 1.46%, and the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the company had lost 9.96% over the past month, lagging the Consumer Discretionary sector's gain of 1.57% and the S&P 500's loss of 0.8% in that time.

ATVI will be looking to display strength as it nears its next earnings release. In that report, analysts expect ATVI to post earnings of $0.70 per share. This would mark year-over-year growth of 20.69%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 16.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.66 per share and revenue of $8.53 billion. These totals would mark changes of +5.48% and +1.33%, respectively, from last year.

Any recent changes to analyst estimates for ATVI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. ATVI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ATVI is holding a Forward P/E ratio of 25.25. This valuation marks a premium compared to its industry's average Forward P/E of 23.56.

Investors should also note that ATVI has a PEG ratio of 1.52 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. ATVI's industry had an average PEG ratio of 1.64 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 53, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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