In the latest close session, Take-Two Interactive (TTWO) was up +2.18% at $201.36. This move outpaced the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
Shares of the publisher of "Grand Theft Auto" and other video games have depreciated by 5.52% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 0.69%, and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Take-Two Interactive in its upcoming earnings disclosure. On that day, Take-Two Interactive is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 46.79%. In the meantime, our current consensus estimate forecasts the revenue to be $1.55 billion, indicating a 1.94% decline compared to the corresponding quarter of the prior year.
TTWO's full-year Zacks Consensus Estimates are calling for earnings of $3.91 per share and revenue of $6.67 billion. These results would represent year-over-year changes of +90.73% and +18.16%, respectively.
It is also important to note the recent changes to analyst estimates for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. Take-Two Interactive is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 24.32. For comparison, its industry has an average Forward P/E of 16.69, which means Take-Two Interactive is trading at a premium to the group.
Meanwhile, TTWO's PEG ratio is currently 2.43. 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. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.45.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 36% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).