In the latest trading session, Take-Two Interactive (TTWO) closed at $211.91, marking a -4.93% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow lost 0.63%, while the tech-heavy Nasdaq lost 0.78%.
The publisher of "Grand Theft Auto" and other video games's stock has dropped by 7.74% in the past month, falling short of the Consumer Discretionary sector's loss of 4.05% and the S&P 500's loss of 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Take-Two Interactive in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.83, indicating a 43.15% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.66 billion, indicating a 15.42% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.04 per share and a revenue of $8.53 billion, representing changes of +71.71% and +26.97%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.62% lower. Currently, Take-Two Interactive is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 31.66. This represents a premium compared to its industry average Forward P/E of 17.48.
We can also see that TTWO currently has a PEG ratio of 1.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Gaming industry was having an average PEG ratio of 1.16.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).