In the latest trading session, Take-Two Interactive (TTWO) closed at $220.19, marking a -1.48% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.84%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 1.71%.
Shares of the publisher of "Grand Theft Auto" and other video games have appreciated by 12.85% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 1.03%, and the S&P 500's gain of 10.96%.
Analysts and investors alike will be keeping a close eye on the performance of Take-Two Interactive in its upcoming earnings disclosure. The company's earnings report is set to go public on May 21, 2026. The company is expected to report EPS of $0.58, down 46.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, down 1.94% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.91 per share and revenue of $6.69 billion, indicating changes of +90.73% and +18.37%, respectively, compared to the previous 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Take-Two Interactive possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Take-Two Interactive is at present trading with a Forward P/E ratio of 27.81. Its industry sports an average Forward P/E of 16.3, so one might conclude that Take-Two Interactive is trading at a premium comparatively.
It is also worth noting that TTWO currently has a PEG ratio of 2.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Gaming industry stood at 1.45 at the close of the market yesterday.
The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 41% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on 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).