Take-Two Interactive (TTWO) closed at $250.52 in the latest trading session, marking a +1.13% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq lost 0.33%.
The publisher of "Grand Theft Auto" and other video games's shares have seen an increase of 8.48% over the last month, surpassing the Consumer Discretionary sector's gain of 1.05% and the S&P 500's gain of 2.57%.
The investment community will be paying close attention to the earnings performance of Take-Two Interactive in its upcoming release. The company's upcoming EPS is projected at $0.96, signifying a 45.45% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.74 billion, up 17.72% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.84 per share and a revenue of $6.1 billion, indicating changes of +38.54% and +7.99%, respectively, from the former year.
Investors should also take note of any recent adjustments to 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has remained steady. Currently, Take-Two Interactive is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Take-Two Interactive is currently exchanging hands at a Forward P/E ratio of 87.21. Its industry sports an average Forward P/E of 23.52, so one might conclude that Take-Two Interactive is trading at a premium comparatively.
We can additionally observe that TTWO currently boasts a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TTWO's industry had an average PEG ratio of 1.81 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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