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Take-Two Interactive (TTWO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Take-Two Interactive (TTWO - Free Report) ended the recent trading session at $240.14, demonstrating a -1.72% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.06%.

The stock of publisher of "Grand Theft Auto" and other video games has fallen by 0.94% in the past month, leading the Consumer Discretionary sector's loss of 1.49% and undershooting the S&P 500's gain of 1.99%.

The upcoming earnings release of Take-Two Interactive will be of great interest to investors. The company's earnings report is expected on February 3, 2026. The company's upcoming EPS is projected at $0.83, signifying a 15.28% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 15.57% from the prior-year quarter.

TTWO's full-year Zacks Consensus Estimates are calling for earnings of $3.29 per share and revenue of $6.48 billion. These results would represent year-over-year changes of +60.49% and +14.76%, respectively.

Investors should also note any recent changes to analyst estimates for Take-Two Interactive. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. At present, Take-Two Interactive boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Take-Two Interactive is at present trading with a Forward P/E ratio of 74.37. This valuation marks a premium compared to its industry average Forward P/E of 17.39.

We can also see that TTWO currently has a PEG ratio of 2.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.62.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 19% of all 250+ industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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