Take-Two Interactive (TTWO) closed the most recent trading day at $255.40, moving -1.15% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.42%.
Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 7.23% over the past month, outpacing the Consumer Discretionary sector's loss of 0.7% and the S&P 500's gain of 3.54%.
Market participants will be closely following the financial results of Take-Two Interactive in its upcoming release. On that day, Take-Two Interactive is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 37.88%. At the same time, our most recent consensus estimate is projecting a revenue of $1.74 billion, reflecting a 17.72% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.83 per share and a revenue of $6.1 billion, indicating changes of +38.05% and +7.99%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Take-Two Interactive. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Take-Two Interactive boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 91.32. Its industry sports an average Forward P/E of 25.7, so one might conclude that Take-Two Interactive is trading at a premium comparatively.
One should further note that TTWO currently holds a PEG ratio of 2.67. 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 average PEG ratio for the Gaming industry stood at 1.96 at the close of the market yesterday.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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