In the latest close session, Take-Two Interactive (TTWO) was up +1.34% at $258.41. This move outpaced the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.12%.
The publisher of "Grand Theft Auto" and other video games's shares have seen an increase of 18.94% over the last month, surpassing the Consumer Discretionary sector's gain of 2.31% and the S&P 500's loss of 0.9%.
The investment community will be paying close attention to the earnings performance of Take-Two Interactive in its upcoming release. In that report, analysts expect Take-Two Interactive to post earnings of $0.31 per share. This would mark a year-over-year decline of 49.18%. In the meantime, our current consensus estimate forecasts the revenue to be $1.35 billion, indicating a 4.85% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.73 per share and a revenue of $8.49 billion, representing changes of +64.15% and +26.3%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Take-Two Interactive. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.95% higher within the past month. Take-Two Interactive presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Take-Two Interactive is currently being traded at a Forward P/E ratio of 37.9. This represents a premium compared to its industry average Forward P/E of 18.41.
It's also important to note that TTWO currently trades at a PEG ratio of 3.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Gaming industry stood at 1.19 at the close of the market yesterday.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% 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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Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).