Take-Two Interactive (TTWO) closed the most recent trading day at $216.85, moving +2.27% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.24%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.26%.
The stock of publisher of "Grand Theft Auto" and other video games has risen by 5.69% in the past month, leading the Consumer Discretionary sector's gain of 4.15% and undershooting the S&P 500's gain of 6.42%.
The upcoming earnings release of Take-Two Interactive will be of great interest to investors. In that report, analysts expect Take-Two Interactive to post earnings of $0.58 per share. This would mark a year-over-year decline of 46.79%. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 1.94% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.91 per share and a revenue of $6.67 billion, demonstrating changes of +90.73% and +18.16%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 past month, there's been a 0.17% rise in the Zacks Consensus EPS estimate. Take-Two Interactive is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Take-Two Interactive has a Forward P/E ratio of 26.16 right now. This signifies a premium in comparison to the average Forward P/E of 17.43 for its industry.
Investors should also note that TTWO has a PEG ratio of 2.62 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.53.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 40% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
