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Take-Two (TTWO) Touches 52-Week High: Should You Hold?

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Take-Two Interactive Software Inc. (TTWO - Free Report) hit a new 52-week high of $38.72 in yesterday’s trading session and eventually closed at $38.65.

The company’s shares have been on an uptrend since it reported fourth quarter fiscal 2016 results on May 18, having gained approximately 8.3% so far. In the year-to-date time frame, the company has returned over 10.9% compared with the S&P 500’s return of 2.3% in the same period.

The company is benefiting from its solid product portfolio. In the fourth quarter, the company witnessed strong growth from its popular offerings like GrandTheft Auto V and Grand Theft Auto online, which performed above expectations. These apart, other notable releases like XCOM2, WWE 2K16 and NBA 2K16 also remained strong.

Going ahead, the company is expected to generate strong sales from its upcoming titles like Battleborn, Red Dead Redemption 2, NBA 2K17, WWE 2K17, Borderlands 3, Mafia III, Sid Meier's Civilization VI and others.

The company continues to expect growth in digital revenues driven by higher sale of full game downloads and increases in recurrent consumer spending.

Furthermore, over the last 7 days, the Zacks Consensus Estimate for the company’s earnings in fiscal 2017 has increased by 18.8% to 82 cents.

However, increasing competition from the likes of Electronic Arts (EA - Free Report) , Activision (ATVI - Free Report) and Zynga (ZNGA - Free Report) remains a concern.

Currently, Take Two carries a Zacks Rank #3 (Hold).

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