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Take-Two Interactive (TTWO) Declines More Than Market: Some Information for Investors
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Take-Two Interactive (TTWO - Free Report) closed at $244.12 in the latest trading session, marking a -2.85% move from the prior day. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
The publisher of "Grand Theft Auto" and other video games's stock has climbed by 8.86% in the past month, exceeding the Consumer Discretionary sector's loss of 0.43% and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Take-Two Interactive in its forthcoming earnings report. The company is expected to report EPS of $0.91, up 37.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.74 billion, up 17.72% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.83 per share and revenue of $6.1 billion, which would represent changes of +38.05% and +7.99%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 has shifted 0.37% downward. Currently, Take-Two Interactive is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 88.81. This signifies a premium in comparison to the average Forward P/E of 24.23 for its industry.
Investors should also note that TTWO has a PEG ratio of 2.6 right now. 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. Gaming stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons 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.
To follow TTWO in the coming trading sessions, be sure to utilize Zacks.com.
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Take-Two Interactive (TTWO) Declines More Than Market: Some Information for Investors
Take-Two Interactive (TTWO - Free Report) closed at $244.12 in the latest trading session, marking a -2.85% move from the prior day. This move lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
The publisher of "Grand Theft Auto" and other video games's stock has climbed by 8.86% in the past month, exceeding the Consumer Discretionary sector's loss of 0.43% and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Take-Two Interactive in its forthcoming earnings report. The company is expected to report EPS of $0.91, up 37.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.74 billion, up 17.72% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.83 per share and revenue of $6.1 billion, which would represent changes of +38.05% and +7.99%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 has shifted 0.37% downward. Currently, Take-Two Interactive is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Take-Two Interactive is presently being traded at a Forward P/E ratio of 88.81. This signifies a premium in comparison to the average Forward P/E of 24.23 for its industry.
Investors should also note that TTWO has a PEG ratio of 2.6 right now. 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. Gaming stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons 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.
To follow TTWO in the coming trading sessions, be sure to utilize Zacks.com.