Take-Two Interactive (TTWO) closed the most recent trading day at $208.93, moving -1.03% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 4.84% for the day. Meanwhile, the Dow lost 3.98%, and the Nasdaq, a tech-heavy index, lost 5.97%.
Coming into today, shares of the publisher of "Grand Theft Auto" and other video games had lost 1.73% in the past month. In that same time, the Consumer Discretionary sector lost 11.43%, while the S&P 500 lost 4.7%.
Investors will be eagerly watching for the performance of Take-Two Interactive in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.08, signifying a 248.39% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.55 billion, indicating a 14.73% increase compared to the same quarter of the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Take-Two Interactive presently features a Zacks Rank of #3 (Hold).
Investors should also note Take-Two Interactive's current valuation metrics, including its Forward P/E ratio of 28.8. Its industry sports an average Forward P/E of 19.04, so one might conclude that Take-Two Interactive is trading at a premium comparatively.
It is also worth noting that TTWO currently has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.23.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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