Take-Two Interactive (TTWO) ended the recent trading session at $251.54, demonstrating a -1.07% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.23%. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 0.8%.
Shares of the publisher of "Grand Theft Auto" and other video games have depreciated by 2.19% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 4.38%, and lagging the S&P 500's gain of 3.57%.
Analysts and investors alike will be keeping a close eye on the performance of Take-Two Interactive in its upcoming earnings disclosure. The company's earnings report is set to go public on November 6, 2025. The company is predicted to post an EPS of $0.91, indicating a 37.88% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.74 billion, indicating a 17.71% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.86 per share and a revenue of $6.11 billion, demonstrating changes of +39.51% and +8.13%, respectively, from the preceding year.
Any recent changes to analyst estimates for Take-Two Interactive should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.7% higher within the past month. As of now, Take-Two Interactive holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Take-Two Interactive is currently being traded at a Forward P/E ratio of 88.86. This indicates a premium in contrast to its industry's Forward P/E of 23.34.
It is also worth noting that TTWO currently has a PEG ratio of 2.6. 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 average PEG ratio for the Gaming industry stood at 1.9 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 41, placing it within the top 17% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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