Activision Blizzard Inc. (ATVI): Today's Featured Computer Software & Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Activision Blizzard ( ATVI) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.3%. By the end of trading, Activision Blizzard rose $0.24 (1.6%) to $15.18 on average volume. Throughout the day, 6,526,635 shares of Activision Blizzard exchanged hands as compared to its average daily volume of 7,228,500 shares. The stock ranged in a price between $14.93-$15.46 after having opened the day at $14.93 as compared to the previous trading day's close of $14.94. Other companies within the Computer Software & Services industry that increased today were: Pactera Technology International ( PACT), up 30.6%, Webmedia Brands ( WEBM), up 12.2%, Crexendo ( EXE), up 9.6% and Sonic Foundry ( SOFO), up 9.4%.
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Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile interactive entertainment products worldwide. It operates in three segments: Activision, Blizzard, and Distribution. Activision Blizzard has a market cap of $16.6 billion and is part of the technology sector. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are up 39.9% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Activision Blizzard as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, CounterPath Corporation ( CPAH), down 6.5%, GRAVITY ( GRVY), down 4.7%, TigerLogic Corporation ( TIGR), down 4.5% and Red Hat ( RHT), down 4.3% , were all laggards within the computer software & services industry with Intuit ( INTU) being today's computer software & services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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