In the latest trading session, Take-Two Interactive (TTWO) closed at $235.33, marking a -2.85% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.
The stock of publisher of "Grand Theft Auto" and other video games has risen by 3.19% in the past month, lagging the Consumer Discretionary sector's gain of 5.57% and the S&P 500's gain of 4.37%.
The upcoming earnings release of Take-Two Interactive will be of great interest to investors. On that day, Take-Two Interactive is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 420%. Alongside, our most recent consensus estimate is anticipating revenue of $1.28 billion, indicating a 5.42% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.7 per share and revenue of $5.99 billion. These totals would mark changes of +31.71% and +6.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Take-Two Interactive. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Take-Two Interactive is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Take-Two Interactive is presently trading at a Forward P/E ratio of 89.76. This denotes a premium relative to the industry average Forward P/E of 24.5.
One should further note that TTWO currently holds a PEG ratio of 2.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Gaming industry currently had an average PEG ratio of 1.75 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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