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Take-Two Interactive (TTWO) Stock Moves -0.74%: What You Should Know

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Take-Two Interactive (TTWO - Free Report) closed at $101.34 in the latest trading session, marking a -0.74% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.06%. Elsewhere, the Dow lost 1.81%, while the tech-heavy Nasdaq lost 2.99%.

Coming into today, shares of the publisher of "Grand Theft Auto" and other video games had lost 4.44% in the past month. In that same time, the Consumer Discretionary sector lost 5.91%, while the S&P 500 lost 6.47%.

TTWO will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2019. On that day, TTWO is projected to report earnings of $2.73 per share, which would represent year-over-year growth of 116.67%. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, up 124.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.99 per share and revenue of $2.95 billion, which would represent changes of +79.5% and +48.11%, respectively, from the prior year.

Any recent changes to analyst estimates for TTWO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. TTWO currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TTWO has a Forward P/E ratio of 20.48 right now. For comparison, its industry has an average Forward P/E of 18.81, which means TTWO is trading at a premium to the group.

We can also see that TTWO currently has a PEG ratio of 1.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.31 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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