In the latest trading session, Take-Two Interactive (TTWO) closed at $213.30, marking a +1.59% move from the previous day. This change lagged the S&P 500's 1.67% gain on the day. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Coming into today, shares of the publisher of "Grand Theft Auto" and other video games had lost 3.66% in the past month. In that same time, the Consumer Discretionary sector lost 6.33%, while the S&P 500 lost 6.57%.
The upcoming earnings release of Take-Two Interactive will be of great interest to investors. The company's earnings report is expected on May 15, 2025. The company is forecasted to report an EPS of $1.08, showcasing a 248.39% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 14.73% escalation compared to the year-ago quarter.
Investors should also take note of any recent adjustments to analyst estimates for Take-Two Interactive. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Take-Two Interactive is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 28.65. This expresses a premium compared to the average Forward P/E of 15.67 of its industry.
Also, we should mention that TTWO has a PEG ratio of 0.88. 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 of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.2.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 42% echelons 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.
To follow TTWO in the coming trading sessions, be sure to utilize 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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