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Why the Market Dipped But Take-Two Interactive (TTWO) Gained Today

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Take-Two Interactive (TTWO - Free Report) ended the recent trading session at $244.56, demonstrating a +1.28% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.59%.

Shares of the publisher of "Grand Theft Auto" and other video games witnessed a gain of 2.74% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 2.67%, and the S&P 500's loss of 0.21%.

Investors will be eagerly watching for the performance of Take-Two Interactive in its upcoming earnings disclosure. On that day, Take-Two Interactive is projected to report earnings of $0.83 per share, which would represent year-over-year growth of 15.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.59 billion, up 15.57% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.28 per share and a revenue of $6.48 billion, signifying shifts of +60% and +14.76%, respectively, from the last year.

Any recent changes to analyst estimates for Take-Two Interactive should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. As of now, Take-Two Interactive holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Take-Two Interactive has a Forward P/E ratio of 73.53 right now. This indicates a premium in contrast to its industry's Forward P/E of 22.51.

We can also see that TTWO currently has a PEG ratio of 2.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Gaming stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 Zacks.com.


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