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.
||Santa Monica, Calif.
||Home entertainment software
||President/CEO Robert Kotick
CFO Dennis Durkin
|Return on Equity (average, past 3 years)
|Cash / Debt
||$3.2 billion / $0
Take-Two Interactive Software
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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