Take-Two Interactive (TTWO) closed at $241.10 in the latest trading session, marking a +1.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 0.91%.
Prior to today's trading, shares of the publisher of "Grand Theft Auto" and other video games had lost 5.31% lagged the Consumer Discretionary sector's loss of 2.69% and the S&P 500's gain of 0.71%.
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 February 3, 2026. It is anticipated that the company will report an EPS of $0.83, marking a 15.28% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.59 billion, indicating a 15.57% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.29 per share and a revenue of $6.48 billion, indicating changes of +60.49% and +14.76%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Take-Two Interactive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. As of now, Take-Two Interactive holds a Zacks Rank of #3 (Hold).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 72.51. This indicates a premium in contrast to its industry's Forward P/E of 16.7.
One should further note that TTWO currently holds a PEG ratio of 2.1. 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. Gaming stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 16% of all 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.
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
