Take-Two Interactive (TTWO) closed the most recent trading day at $239.27, moving -1.61% from the previous trading session. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw an upswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.72%.
The publisher of "Grand Theft Auto" and other video games's stock has dropped by 5.02% in the past month, falling short of the Consumer Discretionary sector's loss of 4.91% and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of Take-Two Interactive in its upcoming earnings disclosure. The company's earnings report is set to be unveiled 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. At the same time, our most recent consensus estimate is projecting a revenue of $1.59 billion, reflecting a 15.57% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.37 per share and revenue of $6.49 billion, indicating changes of +64.39% and +14.84%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Take-Two Interactive. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Take-Two Interactive is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Take-Two Interactive is at present trading with a Forward P/E ratio of 72.2. This indicates a premium in contrast to its industry's Forward P/E of 16.29.
We can also see that TTWO currently has a PEG ratio of 2.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.48.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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