Take-Two Interactive (TTWO) closed the most recent trading day at $211.36, moving -1.51% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.24%. Meanwhile, the Dow experienced a drop of 1.73%, and the technology-dominated Nasdaq saw a decrease of 3.07%.
The publisher of "Grand Theft Auto" and other video games's stock has climbed by 5.03% in the past month, exceeding the Consumer Discretionary sector's loss of 5.64% and the S&P 500's loss of 4.17%.
The upcoming earnings release of Take-Two Interactive will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.08, reflecting a 248.39% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.55 billion, indicating a 14.73% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Take-Two Interactive. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Take-Two Interactive holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Take-Two Interactive has a Forward P/E ratio of 29.28 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.57.
We can additionally observe that TTWO currently boasts a PEG ratio of 0.9. 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 1.22 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 155, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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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