NEW YORK (TheStreet) -- Activision Blizzard Inc. (ATVI - Get Report), the largest U.S. video game company, is heading into the holiday shopping season with two of the most anticipated shooter titles and less competition after rivals delayed their products, Bloomberg reports.
The company's new Destiny game and latest Call of Duty will be the top-selling action titles of the holiday season, according to Michael Hickey, a Benchmark Co. analyst.
Hickey upped his sales estimates after Electronic Arts (EA - Get Report) and Take-Two Interactive Software (TTWO - Get Report) moved back competing titles to 2015 because their games need more work, Bloomberg said.
Shares of Activision Blizzard are down -0.22% to $22.76.
Must Read: Warren Buffett’s 25 Favorite Stocks
TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, ATVI's share price has jumped by 27.92%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ATVI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for ACTIVISION BLIZZARD INC is currently very high, coming in at 76.33%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.37% is above that of the industry average.
- ATVI's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that ATVI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.38 is high and demonstrates strong liquidity.
- ACTIVISION BLIZZARD INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ACTIVISION BLIZZARD INC reported lower earnings of $0.95 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.32 versus $0.95).
- You can view the full analysis from the report here: ATVI Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.