Activision Blizzard Inc. (
reached a new 52-week high of $22.63 on Jul 1, 2014. The bullish
run reflects Activision's strong first-quarter results, innovative
product pipeline and positive outlook.
The closing price of Activision Blizzard on Jul 2 was $22.55,
representing a strong one-year return of about 57.5% and a
year-to-date return of about 24.8%. The S&P 500 jumped 22.3%
and 7.7%, respectively, during the same period. Average volume of
shares traded over the last three months stands at approximately
Activision Blizzard delivered a positive average earnings surprise
of 245.7% over the past four quarters. This Zacks Rank #2 (Buy)
stock has a market cap of $15.96 billion and a long-term expected
earnings growth rate of 15.9%.
Key Growth Catalysts
We believe that Activision's innovative product pipeline is the key
growth catalyst. The company showcased an enviable line-up of
upcoming titles in the recently concluded Electronic Entertainment
Expo (E3). This included the most anticipated game
, the new installment of Call of Duty franchise -
Call of Duty Advanced Warfare
- and new the Skylander's game -
Skylanders Trap Team
The availability of new games on
new consoles will further boost Activision's top line in 2014.
Management forecasts full-year 2014 revenues to be $4.68 billion
based on strong performance by its major franchises and expected
higher consumer spending on new consoles. The company expects
earnings of $1.27 per share.
We believe that this strong games pipeline will help Activision
counter intensifying competition in the video game market, going
The Zacks Consensus Estimate for 2014 has remained steady at $1.19
per share over the past 30 days. For fiscal 2015, the earnings
estimate increased 2 cents (1.5%) to $1.37 per share over the same
Other Stocks to Consider
Another better-ranked stock that develops and publishes video games
Electronic Arts (
sporting a Zacks Rank #1 (Strong Buy).
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