The latest trading session saw Take-Two Interactive (TTWO – Free Report) ending at $213.42, denoting a +1.81% adjustment from its last day’s close. This move outpaced the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the publisher of “Grand Theft Auto” and other video games have depreciated by 2.61% over the course of the past month, outperforming the Consumer Discretionary sector’s loss of 8.41% and the S&P 500’s loss of 7.33%.
The investment community will be closely monitoring the performance of Take-Two Interactive in its forthcoming earnings report. 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 latest consensus estimate predicts the revenue to be $1.54 billion, indicating a 14.42% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $5.61 billion, which would represent changes of 0% and +5.2%, respectively, from the prior year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Take-Two Interactive presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Take-Two Interactive is currently exchanging hands at a Forward P/E ratio of 83.42. This indicates a premium in contrast to its industry’s Forward P/E of 21.27.
Investors should also note that TTWO has a PEG ratio of 2.56 right now. 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. The Gaming industry had an average PEG ratio of 2.32 as trading concluded yesterday.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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