The Buy for Activision Blizzard (ATVI) this week is based on the most current market intelligence, and relative pricing of its shares. The Buy recommendation for Activision Blizzard Inc (NASDAQ:ATVI) is the outcome of an analytical process that is proprietary which yielded conclusions that were above average in 5 area: an economic sector rated above average in attractiveness, an industry group ranked above average in attractiveness, a ranking in the company's sector that is in the top quarter, ranking in its industry group that is in the top third, and a mathematical computation of risk/reward that is very attractive; and produced below average results in 1 areas: analytical scoring that is below average. ATVI has maintained this ranking for 3 months.
The company is a component of the 25 company Recreational Products GICS industry group, which is a segment of the 117 company GICS Consumer Durables sector. ATVI's market value is $56.2 billion which places it in the top 10% of its industry group The ranking for ATVI by Portfolio Grader places it 8 among the 25 companies in this industry group, giving it an above-average position.
The Consumer Durables sector is ranked number 6 among the 20 sectors in the Portfolio Grader universe putting it in the top half of all the GICS sectors. The Recreational Products industry group is ranked 11 among the 129 industry groups within the GICS sectors, placing it well above-average in terms of the Proprietary Quantitative Score scoring system.
ATVI has attained above-average scores in 0 of the 8 fundamental metrics used by Portfolio Grader and average or below-average grades in 8 of the areas used in the ranking of company stocks.
ATVI's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are substantially below average. Scores for visibility of earnings are worse than the industry norms for earnings revisions, earnings surprises, and earnings momentum. ATVI's grades for return on equity and cash flow are worse than its industry group average. Based on these fundamental scores, Activision Blizzard places in the bottom quartile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to view ATVI's shares from the viewpoint of risk/reward. This proprietary scoring approach evaluates the relative value of the company's shares based on the recent $73.92 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, ATVI currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.