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Take-Two Interactive (TTWO) Stock Sinks As Market Gains: Here's Why

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Take-Two Interactive (TTWO - Free Report) closed the most recent trading day at $233.98, moving -1.99% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.

Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 0.1% over the past month, lagging the Consumer Discretionary sector's gain of 4.15% and the S&P 500's gain of 4.2%.

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 August 7, 2025. The company's upcoming EPS is projected at $0.26, signifying a 420.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.28 billion, showing a 5.42% escalation compared to the year-ago quarter.

TTWO's full-year Zacks Consensus Estimates are calling for earnings of $2.7 per share and revenue of $5.99 billion. These results would represent year-over-year changes of +31.71% and +6.1%, respectively.

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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Take-Two Interactive currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 88.46. This signifies a premium in comparison to the average Forward P/E of 24.12 for its industry.

It's also important to note that TTWO currently trades at a PEG ratio of 2.6. 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. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.73.

The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow TTWO in the coming trading sessions, be sure to utilize Zacks.com.


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