Could Activision Blizzard Be a Value Stock?
Trading at roughly 42 times trailing earnings and 30 times this year's expected profits, Activision Blizzard (NASDAQ: ATVI) doesn't fit the typical value-stock profile. Those earnings multiples mean that the video game publisher is more often grouped in the "growth stock" category. However, these terms are somewhat imprecise -- and sticking too narrowly to the investing approaches they imply can lead to missed opportunities.
In many cases, whether a stock is a smart growth play ultimately comes down to how much the business is growing and what price you've paid for that growth. Activision Blizzard is certainly growing quickly, but does its stock still present big upside opportunity after gaining more than 450% over the last five years? Let's take a look.
Image source: Activision Blizzard.
Source: Fool.com