Take-Two Interactive (TTWO) ended the recent trading session at $256.09, demonstrating a +1.78% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
The stock of publisher of "Grand Theft Auto" and other video games has risen by 3.27% in the past month, leading the Consumer Discretionary sector's gain of 2.33% and the S&P 500's gain of 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of Take-Two Interactive in its upcoming earnings disclosure. In that report, analysts expect Take-Two Interactive to post earnings of $0.83 per share. This would mark year-over-year growth of 15.28%. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 15.57% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.28 per share and a revenue of $6.48 billion, indicating changes of +60% and +14.76%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Take-Two Interactive. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has shifted 0.01% downward. Right now, Take-Two Interactive possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Take-Two Interactive currently has a Forward P/E ratio of 76.61. This indicates a premium in contrast to its industry's Forward P/E of 22.97.
It is also worth noting that TTWO currently has a PEG ratio of 2.22. 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 2.02 at the close of the market yesterday.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 27% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
