New Lifetime High Reached: Activision Blizzard (ATVI)

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 new lifetime high 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 $138.5 million.
  • ATVI has traded 122,659 shares today.
  • ATVI is trading at a new lifetime high.

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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 0.9%. ATVI has a PE ratio of 23.6. Currently there are 17 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 6.8 million shares per day over the past 30 days. Activision Blizzard has a market cap of $16.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.06 and a short float of 3.7% with 2.96 days to cover. Shares are up 26.8% 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 attractive valuation levels, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The gross profit margin for ACTIVISION BLIZZARD INC is currently very high, coming in at 76.33%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.37% is above that of the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • ATVI's debt-to-equity ratio of 0.62 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 2.38 is high and demonstrates strong liquidity.
  • ACTIVISION BLIZZARD INC reported flat earnings per share in the most recent quarter. 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 ($1.30 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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