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Take-Two Interactive (TTWO) Gains But Lags Market: What You Should Know

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Take-Two Interactive (TTWO - Free Report) closed the most recent trading day at $179.44, moving +0.61% from the previous trading session. This move lagged the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.

Coming into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 8.15% in the past month. In that same time, the Consumer Discretionary sector lost 9.2%, while the S&P 500 lost 2.63%.

Wall Street will be looking for positivity from Take-Two Interactive as it approaches its next earnings report date. In that report, analysts expect Take-Two Interactive to post earnings of $1.14 per share. This would mark a year-over-year decline of 8.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $879.18 million, up 7.97% from the year-ago period.

TTWO's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $3.47 billion. These results would represent year-over-year changes of -32.02% and -2.3%, respectively.

Investors should also note any recent changes to analyst estimates for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Take-Two Interactive is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Take-Two Interactive is holding a Forward P/E ratio of 37. For comparison, its industry has an average Forward P/E of 17.99, which means Take-Two Interactive is trading at a premium to the group.

Meanwhile, TTWO's PEG ratio is currently 3.36. 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. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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

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