IIn the last trading session, Activision Blizzard, Inc (ATVI) closed at $79.51, marking a -0.05% move from the previous day. The change lagged the S&P 500’s 2.14% daily gain. Meanwhile, the Dow gained 1.82% and the Nasdaq, a technology-heavy index, lost 0.01%.

Going into today, the company’s shares had lost 2.39% over the past month, outpacing the Consumer Discretionary sector’s loss of 12.05% and the S&P 500’s loss of 5, 01% during this period.

Investors are hoping for strength from Activision Blizzard, Inc as it approaches its next earnings release. In this report, analysts expect Activision Blizzard, Inc to post earnings of $0.73 per share. That would mark a 13.1% year-over-year decline. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $1.8 billion, down 12.86% from the year-ago period.

Zacks consensus estimates for the full year for ATVI call for earnings of $3.60 per share and revenue of $8.57 billion. These results would represent year-over-year variations of -3.23% and +2.54%, respectively.

Investors should also note any recent changes to analyst estimates for Activision Blizzard, Inc. These revisions help show the ever-changing nature of near-term business trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success, with No. 1 stocks delivering an average annual return of +25% since 1988. Over the past month, Zacks Consensus’ EPS estimate has remained stagnant. Activision Blizzard, Inc currently sports a Zacks rank of #3 (Hold).

As for its valuation, Activision Blizzard, Inc holds a Forward P/E ratio of 22.08. This valuation marks a premium to its industry average Forward P/E of 16.95.

Investors should also note that ATVI currently has a PEG ratio of 1.52. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. ATVI’s industry had an average PEG ratio of 2.07 at yesterday’s close.

The Toys – Games – Leisure industry is part of the consumer discretionary sector. This industry currently has a Zacks Industry Ranking of 66, which places it in the top 26% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.