Take-Two Interactive (TTWO) closed at $225.45 in the latest trading session, marking a -0.39% move from the prior day. This change lagged the S&P 500's 0.58% gain on the day. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 1.07%.
Coming into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 8.75% in the past month. In that same time, the Consumer Discretionary sector gained 16.88%, while the S&P 500 gained 11.33%.
The investment community will be paying close attention to the earnings performance of Take-Two Interactive in its upcoming release. The company is slated to reveal its earnings on May 15, 2025. On that day, Take-Two Interactive is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 248.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 14.73% from the year-ago period.
Any recent changes to analyst estimates for Take-Two Interactive should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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 past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. Take-Two Interactive presently features 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 34.31 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.86.
We can also see that TTWO currently has a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 146, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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