In the latest trading session, Take-Two Interactive (TTWO) closed at $241.62, marking a +1.36% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the publisher of "Grand Theft Auto" and other video games witnessed a gain of 5.95% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.13%, and the S&P 500's gain of 0.5%.
The investment community will be paying close attention to the earnings performance of Take-Two Interactive in its upcoming release. The company's upcoming EPS is projected at $0.26, signifying a 420.00% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.28 billion, reflecting a 5.42% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.93 per share and a revenue of $5.99 billion, demonstrating changes of +42.93% and +6.1%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Take-Two Interactive. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Right now, Take-Two Interactive possesses a Zacks Rank of #4 (Sell).
Investors should also note Take-Two Interactive's current valuation metrics, including its Forward P/E ratio of 81.26. Its industry sports an average Forward P/E of 18.98, so one might conclude that Take-Two Interactive is trading at a premium comparatively.
It's also important to note that TTWO currently trades at a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming was holding an average PEG ratio of 1.54 at yesterday's closing price.
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.
Be sure to follow all of these stock-moving metrics, and many 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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