4-Star Stocks Poised to Pop: Activision Blizzard
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game giant Activision Blizzard (NAS: ATVI) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Activision's business and see what CAPS investors are saying about the stock right now.
Activision facts
Headquarters (founded) | Santa Monica, Calif. |
Market Cap | $13.1 billion |
Industry | Home entertainment software |
Trailing-12-Month Revenue | $4.4 billion |
Management | President/CEO Robert Kotick |
Return on Equity (average, past 3 years) | 5.6% |
Cash / Debt | $3.2 billion / $0 |
Dividend Yield | 1.5% |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 7,203 members who have rated Activision believe the stock will outperform the S&P 500 going forward.
Just last month, one of those bulls, All-Star investorpoet2, tapped Activision as a solid bargain opportunity:
Keeps looking cheaper and cheaper. Great franchises. Just because [World of Warcraft] is in decline does not mean the end of growth for the company.
Adding at 16x earnings, 14.5x cash flow, and 1.2x book value. The forward P/E is 10.6. This for a company that is estimated to grow at 10%/year for the next five years. This looks to be a conservative estimate of growth.
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The article 4-Star Stocks Poised to Pop: Activision Blizzard originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Activision and Take-Two, as well as creating a synthetic long position in Activision. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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