5-Star Stocks Poised to Pop: Activision Blizzard

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, video game giant Activision Blizzard (NASDAQ:ATVID) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Activision Blizzard's business, and see what CAPS investors are saying about the stock right now.

Activision facts

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 618 of 640 of the All-Star members who have rated Activision -- some 97% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include Sargeras and Gibyo, both of whom are ranked in the top 10% of our community.

In December 2007, Sargeras commented on Activision's deal with Vivendi's gaming segment: "Activision Blizzard is a winner. With the unparalleled success of [Blizzard's] World of Warcraft, and the upcoming StarCraft 2 -- not to mention Activision's successes -- this is one I'll be adding to and holding for a long time."

In the same month, Gibyo elaborated on that bullish Blizzard line of thinking:

Activision and Blizzard together make the strongest gaming power house in the world, by a huge margin. Both companies (though Blizzard especially) have set out to revolutionize the way the world sees video games and both have experienced tremendous growth as a result. ...

Though it is unlikely we will see another 'Starcraft Phenomenon' [Blizzard's legendary product] repeated outside of Korea, we're still going to see big changes. We've seen a slight preview with World of Warcraft, Blizzard's new most famous product

This industry is still quite small (I know plenty that would disagree; they're wrong), and Blizzard is far and away the most positioned to capitalize on it just as it has in the past. Activision is a bit behind, but it's much closer than anyone else. Combined, they are absolutely untouchable.

What do you think about Activision, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.