Activision Blizzard
ATVI
Delayed Nasdaq - 09/24 10:00:00 pm
80.6USD
+0.39%

Good timing to anticipate the return of volatility

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Anas Lozach
Analyst

Strategy published on : 01/11/2018 | 14:01

long trade
Target price hit

Entry price : 68.29$
Target : 71$
Stop-loss : 64.8$
Potential : 3.97%

After accumulation, acceleration. Timing appears favorable to go long in shares of Activision Blizzard and to anticipate an exit of the trading range on the upside.
Investors have an opportunity to buy the stock and target the $ 71.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

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


Strengths

● The group's activity appears highly profitable thanks to its outperforming net margins.

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

● The group usually releases upbeat results with huge surprise rates.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

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

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 55.88 USD


Weaknesses

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 50.36 and 41.98 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

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

Zonebourse.com 2018
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