Activision Blizzard

ATVI
Real-time BATS EXCHANGE - 09/19 04:44:33 pm
53.47USD
-0.22%

A technical turn-around configuration

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Jordan Dufee
Analyst

Strategy published on : 09/10/2019 | 10:25

long trade
Live

Entry price : 54.745$
Target : 69$
Stop-loss : 47$
Potential : 26.04%

Activision Blizzard shares could get back into a rising trend over the medium term, as suggested by technical indicators.
Investors have an opportunity to buy the stock and target the $ 69.

Summary

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● For the past twelve months, EPS forecast has been revised upwards.

● Analysts covering this company mostly recommend stock overweighting or purchase.


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Based on current prices, the company has particularly high valuation levels.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 36.09 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

● Below the resistance at 55.88 USD, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2019
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