In the latest trading session, Take-Two Interactive (TTWO) closed at $209.37, marking a +2.63% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
Prior to today's trading, shares of the publisher of "Grand Theft Auto" and other video games had lost 3.38% lagged the Consumer Discretionary sector's loss of 2.96% and the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of Take-Two Interactive in its upcoming release. It is anticipated that the company will report an EPS of $0.83, marking a 43.15% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.66 billion, indicating a 15.42% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.04 per share and revenue of $8.53 billion, indicating changes of +71.71% and +26.97%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Take-Two Interactive. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Take-Two Interactive possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Take-Two Interactive has a Forward P/E ratio of 28.98 right now. Its industry sports an average Forward P/E of 15.45, so one might conclude that Take-Two Interactive is trading at a premium comparatively.
Meanwhile, TTWO's PEG ratio is currently 1.06. 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 1.06 as trading concluded yesterday.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% 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.
To follow TTWO in the coming trading sessions, be sure to utilize Zacks.com.
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Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).