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Activision Blizzard, Inc (ATVI) closed the last day of trading at $76.24, or +0.37% from the previous trading session. That move topped the S&P 500’s 0.3% daily loss. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.28%.

As of today, the company’s shares have gained 0.81% over the past month. Meanwhile, the consumer discretionary sector lost 0.52%, while the S&P 500 gained 1.51%.

Investors are hoping for strength from Activision Blizzard, Inc ahead of its next earnings release, which is expected to be on August 1, 2022. The company is expected to post EPS of $0.45, down 50.55% compared to the quarter of the previous year. Meanwhile, our latest consensus estimate calls for revenue of $1.52 billion, down 20.76% from the prior year quarter.

Zacks consensus estimates for the full year for ATVI call for earnings of $2.81 per share and revenue of $7.77 billion. These results would represent year-over-year variations of -24.46% and -7.05%, respectively.

It’s also important to note recent changes to analyst estimates for Activision Blizzard, Inc. These revisions generally reflect the latest short-term business trends, which may change frequently. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with No. 1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection is down 0.37%. Activision Blizzard, Inc currently holds a Zacks rating of #5 (high selling).

Investors should also note Activision Blizzard, Inc’s current valuation metrics, including its Forward P/E ratio of 26.99. For comparison, its industry has an average Forward P/E of 15.5, which means Activision Blizzard, Inc is trading at a premium to the group.

Additionally, it should be mentioned that ATVI has a PEG ratio of 1.86. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The Toys-Games-Hobby stock had an average PEG ratio of 1.51 at yesterday’s closing price.

The Toys – Games – Leisure industry is part of the consumer discretionary sector. This industry currently has a Zacks Industry Rank of 214, which places it in the bottom 16% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.