Take-Two Interactive (TTWO) closed the most recent trading day at $228.64, moving -1.05% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.78%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.61%.
Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had lost 4.93% over the past month, lagging the Consumer Discretionary sector's gain of 4.9% and the S&P 500's gain of 5.88%.
Analysts and investors alike will be keeping a close eye on the performance of Take-Two Interactive in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2025. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $1.28 billion, indicating a 5.42% growth compared to the corresponding quarter of the prior year.
TTWO's full-year Zacks Consensus Estimates are calling for earnings of $2.7 per share and revenue of $5.99 billion. These results would represent year-over-year changes of +31.71% and +6.1%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Take-Two Interactive currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Take-Two Interactive is presently trading at a Forward P/E ratio of 85.62. This signifies a premium in comparison to the average Forward P/E of 23.06 for its industry.
It's also important to note that TTWO currently trades at a PEG ratio of 2.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.72.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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