Trade-Ideas: Activision Blizzard (ATVI) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Activision Blizzard as such a stock due to the following factors:
- ATVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.2 million.
- ATVI is up 4.8% today from today's close.
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More details on ATVI:
Activision Blizzard, Inc. develops and publishes online, personal computer (PC), video game console, handheld, mobile, and tablet games. The company operates through two segments, Activision Publishing, Inc. and Blizzard Entertainment, Inc. The stock currently has a dividend yield of 0.8%. ATVI has a PE ratio of 29. Currently there are 14 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Activision Blizzard has been 7.7 million shares per day over the past 30 days. Activision Blizzard has a market cap of $25.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.21 and a short float of 2.8% with 3.10 days to cover. Shares are down 11.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Activision Blizzard as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, ATVI's share price has jumped by 44.43%, 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 70.27%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.76% trails the industry average.
- ACTIVISION BLIZZARD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACTIVISION BLIZZARD INC increased its bottom line by earning $1.20 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.78 versus $1.20).
- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
- You can view the full Activision Blizzard Ratings Report.
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