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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 (Nasdaq: 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 Santa Monica, Calif.
Market Cap $14.0 billion
Industry Home entertainment software
Trailing-12-Month Revenue $4.8 billion
Management President/CEO Robert Kotick
COO/CFO Thomas Tippl
Return on Equity (Average, Past 3 Years) 4.4%
Cash/Debt $2.9 billion / $0
Dividend Yield 1.4%
Competitors Electronic Arts
Take-Two Interactive

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 7,021 members who have rated Activision believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those Fools, TMFDeej, tapped the stock as a particularly timely pick:

Game Developers are typically the complete anti-Deej stock. They are usually expensive, rarely pay dividends, and are at the mercy of the taste of notoriously fickle consumers.

So why am I giving the thumbs up to Activision? I'll tell you why. The company has completely knocked the cover off the ball with its new Skylanders series of games / toys. I fully admit that I have not done enough research on this matter to know how much one hit franchise will move the needle for this large company, nor would I likely invest real money in this idea. However, I got my two sons Skylanders for Christmas and its all that anyone in their classes is talking about. The figures have been completely soldout of every single store and on-line since before Christmas. It looks like [Activision] has the makings of a huge hit on its hands.

I'm not investing in Activision for the long haul here in CAPS, just until Mr. Market realizes what a big hit the company has on its hands with its new series.

What do you think about Activision, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Activision Blizzard and Take-Two Interactive Software and has written calls on Activision Blizzard. Motley Fool newsletter services have recommended buying shares of Activision Blizzard and Take-Two Interactive Software and creating a synthetic long position in Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (7) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 09, 2012, at 4:25 PM, Ostrowsr wrote:

    Ready to "pop" right "after" the 21 Jan options expiration date. Another $500 down the drain. Thanks Motley Fool!

  • Report this Comment On January 09, 2012, at 4:47 PM, redriderxxx wrote:

    I am ready to receive the first options recommendation, but Ostowsr's comment above has me reconsidering.

    I know the rule... Don't invest what you can't afford to lose, but we paid for good advise.

  • Report this Comment On January 09, 2012, at 5:58 PM, kariku wrote:

    Yeah, this one is popping for 3 years now !

    Mister Pacacambra, please cut the crap

  • Report this Comment On January 09, 2012, at 6:01 PM, sept2749 wrote:


  • Report this Comment On January 09, 2012, at 8:28 PM, rockythesquirell wrote:

    maybe we would be better off following drcrooks advise.

  • Report this Comment On January 10, 2012, at 8:19 AM, bonznstonz wrote:

    I bought and held onto this stock for quite a few years. Everytime I waited for to "pop" as they say, it didn't. I recouped what I'd put into it and sold it feeling lucky to have made a few bucks. There's better opportunities out there.

  • Report this Comment On January 12, 2012, at 11:17 PM, etihwttam wrote:

    Not all caps members weighed in on this stock - not by a long shot. So please don't invoke the total number of 180,000 members if it doesn't pertain to ATVI. It's quite possible that only 50 members or so entered a rating on this stock, and, interestingly, very few stocks get a quantity of comments in the bearish category. This needs to be addressed.

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