Back to top

Image: Bigstock

Take-Two Interactive (TTWO) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

Take-Two Interactive (TTWO - Free Report) closed the most recent trading day at $192.11, moving +1.02% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.51%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq lost 1.07%.

Shares of the publisher of "Grand Theft Auto" and other video games have depreciated by 6.2% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 3.67%, and the S&P 500's loss of 0.87%.

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 November 9, 2026. The company is expected to report EPS of $0.9, down 38.36% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.66 billion, showing a 15.42% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.03 per share and a revenue of $8.53 billion, demonstrating changes of +71.46% and +26.97%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Take-Two Interactive. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Take-Two Interactive presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Take-Two Interactive currently has a Forward P/E ratio of 27.06. This indicates a premium in contrast to its industry's Forward P/E of 15.71.

Also, we should mention that TTWO has a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.04.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.

Published in