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Take-Two Interactive (TTWO) Outpaces Stock Market Gains: What You Should Know

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Take-Two Interactive (TTWO - Free Report) ended the recent trading session at $213.77, demonstrating a +1.43% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.

The publisher of "Grand Theft Auto" and other video games's shares have seen an increase of 11.1% over the last month, surpassing the Consumer Discretionary sector's gain of 2.58% and the S&P 500's gain of 9.3%.

The investment community will be paying close attention to the earnings performance of Take-Two Interactive in its upcoming release. The company is slated to reveal its earnings on May 21, 2026. The company's upcoming EPS is projected at $0.58, signifying a 46.79% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 1.94% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.91 per share and revenue of $6.67 billion. These totals would mark changes of +90.73% and +18.16%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Take-Two Interactive is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, Take-Two Interactive is holding a Forward P/E ratio of 26.33. This represents a premium compared to its industry average Forward P/E of 17.74.

We can additionally observe that TTWO currently boasts a PEG ratio of 2.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Gaming industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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