Take-Two Interactive (TTWO) Falls More Steeply Than Broader Market: What Investors Need to Know

By Zacks Equity Research | October 22, 2025, 5:50 PM

In the latest close session, Take-Two Interactive (TTWO) was down 1.81% at $255.56. This change lagged the S&P 500's 0.53% loss on the day. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.93%.

Shares of the publisher of "Grand Theft Auto" and other video games witnessed a gain of 3.58% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 0.52%, and the S&P 500's gain of 1.13%.

The upcoming earnings release of Take-Two Interactive will be of great interest to investors. The company's earnings report is expected on November 6, 2025. 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.74 billion, indicating a 17.71% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.83 per share and a revenue of $6.11 billion, indicating changes of +38.05% and +8.13%, respectively, from the former year.

Investors should also pay attention to any latest changes in 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 suggests that these changes in estimates have a direct relationship with upcoming 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Take-Two Interactive presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Take-Two Interactive is presently trading at a Forward P/E ratio of 91.92. This expresses a premium compared to the average Forward P/E of 22.31 of its industry.

Also, we should mention that TTWO has a PEG ratio of 2.69. 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 1.8.

The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 61, this industry ranks in the top 25% of all industries, numbering over 250.

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.

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 Report

This article originally published on Zacks Investment Research (zacks.com).

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