6. Activision Blizzard ( ATVI) publishes online, computer, console and handheld games. It was formed through the merger of Activision and Vivendi in 2008. It sells the popular Call of Duty series. Second-quarter profit increased 12% to $219 million, or 17 cents a share, as revenue declined 6.9%. The operating margin rose from 23% to 31%. Activision has $2.8 billion of cash and no debt. Its stock trades at a forward earnings multiple of 14, a book value multiple of 1.2 and a cash flow multiple of 12, 49%, 77% and 41% discounts to software peer averages. Its PEG ratio of 0.1 demonstrates a 90% discount to fair value. RBC ( RY) offers a target of $16.