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Take-Two Interactive (TTWO) Exceeds Market Returns: Some Facts to Consider
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Take-Two Interactive (TTWO - Free Report) closed at $246.54 in the latest trading session, marking a +1.02% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.36%, and the tech-heavy Nasdaq gained 0.72%.
Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 3.35% over the past month, lagging the Consumer Discretionary sector's gain of 5.34% and outpacing the S&P 500's gain of 2.38%.
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 $1.19 per share. This would mark year-over-year growth of 80.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.74 billion, up 17.72% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.72 per share and a revenue of $6.09 billion, representing changes of +32.68% and +7.86%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Take-Two Interactive is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Take-Two Interactive currently has a Forward P/E ratio of 89.57. This expresses a premium compared to the average Forward P/E of 23.64 of its industry.
It's also important to note that TTWO currently trades at a PEG ratio of 2.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Take-Two Interactive (TTWO) Exceeds Market Returns: Some Facts to Consider
Take-Two Interactive (TTWO - Free Report) closed at $246.54 in the latest trading session, marking a +1.02% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.36%, and the tech-heavy Nasdaq gained 0.72%.
Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 3.35% over the past month, lagging the Consumer Discretionary sector's gain of 5.34% and outpacing the S&P 500's gain of 2.38%.
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 $1.19 per share. This would mark year-over-year growth of 80.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.74 billion, up 17.72% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.72 per share and a revenue of $6.09 billion, representing changes of +32.68% and +7.86%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Take-Two Interactive is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Take-Two Interactive currently has a Forward P/E ratio of 89.57. This expresses a premium compared to the average Forward P/E of 23.64 of its industry.
It's also important to note that TTWO currently trades at a PEG ratio of 2.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Gaming industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.