Activision Blizzard (ATVI) Stock Up on Starcraft Expectations at E3 Conference

NEW YORK (TheStreet) -- Activision Blizzard (ATVI) shares are up 0.77% to $24.73 in trading on Tuesday during the second day of the Electronic Entertainment Expo in Los Angeles this week.

Last year over 50,000 people attended the trade show at which gaming and entertainment companies whet the appetite of some of their most loyal followers by showcasing the most anticipated products in their pipelines.

Blizzard is expected to present an expansion to Starcraft, one of its most popular online offerings entitled 'Starcraft 2: Legacy of the Void'.

"Activision will probably have the best E3 out of those three," Asif Khan, CEO of video game review website shacknews.com, said, according to Benzinga. "They'll have the best showing. People like the 'Black Ops' series and that's what we're getting - 'Call of Duty: Black Ops 3.' In that world, I think [it's] Activision with EA (EA) closely behind."

TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 15.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • ACTIVISION BLIZZARD INC has improved earnings per share by 32.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACTIVISION BLIZZARD INC increased its bottom line by earning $1.14 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.24 versus $1.14).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 34.5% when compared to the same quarter one year prior, rising from $293.00 million to $394.00 million.
  • You can view the full analysis from the report here: ATVI Ratings Report

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