Trade-Ideas: Activision Blizzard (ATVI) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Activision Blizzard ( ATVI) 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 $92.4 million.
  • ATVI is up 4.4% today from today's close.

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More details on ATVI:

Activision Blizzard, Inc. publishes online, personal computer (PC), video game console, handheld, mobile, and tablet games. The company operates through three segments: Activision, Blizzard, and Distribution. The stock currently has a dividend yield of 1%. ATVI has a PE ratio of 21.0. Currently there are 18 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Activision Blizzard has been 6.4 million shares per day over the past 30 days. Activision Blizzard has a market cap of $14.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.02 and a short float of 3.5% with 3.46 days to cover. Shares are up 8.9% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Activision Blizzard as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these 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 35.48%, 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.
  • ATVI's debt-to-equity ratio of 0.71 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 2.06 is high and demonstrates strong liquidity.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market on the basis of return on equity, ACTIVISION BLIZZARD INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • ACTIVISION BLIZZARD INC's earnings per share declined by 29.0% in the most recent quarter compared to the same quarter a year ago. 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 ($1.28 versus $0.95).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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