Take-Two Interactive (TTWO) closed at $260.50 in the latest trading session, marking a +1.37% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the publisher of "Grand Theft Auto" and other video games had gained 3.3% outpaced the Consumer Discretionary sector's loss of 2.35% and lagged the S&P 500's gain of 4.06%.
Market participants will be closely following the financial results of Take-Two Interactive in its upcoming release. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 37.88% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.74 billion, indicating a 17.72% upward movement from the same quarter last year.
TTWO's full-year Zacks Consensus Estimates are calling for earnings of $2.82 per share and revenue of $6.1 billion. These results would represent year-over-year changes of +37.56% and +7.99%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Take-Two Interactive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Take-Two Interactive is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 91.03. This valuation marks a premium compared to its industry average Forward P/E of 24.24.
Meanwhile, TTWO's PEG ratio is currently 2.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Gaming was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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