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NEW YORK (TheStreet) -- Shares of video game maker Activision Blizzard (ATVI) - Get Free Report are advancing by 4.17% to $29.09 in mid-morning trading on Friday, following Thursday night's announcement that the company will be added to the S&P 500.

Activision will join the index after the close of trading this afternoon as it replaces Pall Corp. (PLL) - Get Free Report, Bloombergreported. Pall is being acquired by Danaher Corp. (DHR) - Get Free Report in a $13.8 billion deal.

Activision Blizzard is a Santa Monica, Calif.-based video game console, handheld, mobile, online and tablet games maker. Activision is the company behind the widely popular Call of Duty game franchise.

The latest Call of Duty Game, Call of Duty: Black Ops III will launch on November 6, although the beta version of the game has already been released.

Additionally, airline company United Continental (UAL) - Get Free Report will be added to the S&P 500on September 2, replacing Hospira Inc. (HSP) , which is also being acquired, Bloomberg noted.

Separately, TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for ACTIVISION BLIZZARD INC is currently very high, coming in at 81.80%. It has increased from the same quarter the previous year.
  • Net operating cash flow has increased to $135.00 million or 27.35% when compared to the same quarter last year. In addition, ACTIVISION BLIZZARD INC has also vastly surpassed the industry average cash flow growth rate of -29.21%.
  • You can view the full analysis from the report here: ATVI Ratings Report