Take-Two Interactive TTWO shares soared 4.5% in the last trading session to close at $256.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.4% gain over the past four weeks.
Take-Two is benefiting from strong tailwinds: blockbuster franchises like Grand Theft Auto and NBA 2K driving high engagement, rapid mobile growth led by Toon Blast and Color Block Jam, expansion onto Nintendo Switch 2, robust pipeline including Borderlands 4 and Mafia: The Old Country, and rising recurrent consumer spending
This publisher of "Grand Theft Auto" and other video games is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of +37.9%. Revenues are expected to be $1.74 billion, up 17.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Take-Two, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TTWO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Take-Two is a member of the Zacks Gaming industry. One other stock in the same industry, Churchill Downs CHDN, finished the last trading session 0.7% higher at $96.94. CHDN has returned -6.5% over the past month.
For Churchill Downs, the consensus EPS estimate for the upcoming report has changed -4.5% over the past month to $1. This represents a change of +3.1% from what the company reported a year ago. Churchill Downs currently has a Zacks Rank of #2 (Buy).
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Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report
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.
