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Take-Two Interactive (TTWO) Stock Drops Despite Market Gains: Important Facts to Note
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Take-Two Interactive (TTWO - Free Report) closed the most recent trading day at $251.60, moving -1.73% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The stock of publisher of "Grand Theft Auto" and other video games has risen by 3.44% in the past month, leading the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 0.54%.
Market participants will be closely following the financial results of Take-Two Interactive in its upcoming release. The company is forecasted to report an EPS of $0.83, showcasing a 15.28% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.59 billion, reflecting a 15.57% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.28 per share and revenue of $6.48 billion, which would represent changes of +60% and +14.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. As of now, Take-Two Interactive holds a Zacks Rank of #3 (Hold).
Digging into valuation, Take-Two Interactive currently has a Forward P/E ratio of 77.96. For comparison, its industry has an average Forward P/E of 16.9, which means Take-Two Interactive is trading at a premium to the group.
Meanwhile, TTWO's PEG ratio is currently 2.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.8.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Take-Two Interactive (TTWO) Stock Drops Despite Market Gains: Important Facts to Note
Take-Two Interactive (TTWO - Free Report) closed the most recent trading day at $251.60, moving -1.73% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The stock of publisher of "Grand Theft Auto" and other video games has risen by 3.44% in the past month, leading the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 0.54%.
Market participants will be closely following the financial results of Take-Two Interactive in its upcoming release. The company is forecasted to report an EPS of $0.83, showcasing a 15.28% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.59 billion, reflecting a 15.57% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.28 per share and revenue of $6.48 billion, which would represent changes of +60% and +14.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. As of now, Take-Two Interactive holds a Zacks Rank of #3 (Hold).
Digging into valuation, Take-Two Interactive currently has a Forward P/E ratio of 77.96. For comparison, its industry has an average Forward P/E of 16.9, which means Take-Two Interactive is trading at a premium to the group.
Meanwhile, TTWO's PEG ratio is currently 2.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Gaming industry had an average PEG ratio of 1.8.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.