Take-Two Interactive (TTWO - Free Report) closed at $101.69 in the latest trading session, marking a -1.71% move from the prior day. This move was narrower than the S&P 500's daily loss of 3.24%. At the same time, the Dow lost 3.1%, and the tech-heavy Nasdaq lost 3.8%.
Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had lost 19.4% over the past month, lagging the Consumer Discretionary sector's gain of 0.02% and the S&P 500's gain of 2.73% in that time.
Investors will be hoping for strength from TTWO as it approaches its next earnings release, which is expected to be February 6, 2019. In that report, analysts expect TTWO to post earnings of $2.74 per share. This would mark year-over-year growth of 117.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, up 125.38% from the year-ago period.
TTWO's full-year Zacks Consensus Estimates are calling for earnings of $5.07 per share and revenue of $2.96 billion. These results would represent year-over-year changes of +82.37% and +48.59%, respectively.
Investors should also note any recent changes to analyst estimates for TTWO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 12.99% higher within the past month. TTWO currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that TTWO has a Forward P/E ratio of 20.42 right now. For comparison, its industry has an average Forward P/E of 20.85, which means TTWO is trading at a discount to the group.
Also, we should mention that TTWO has a PEG ratio of 1.2. 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. TTWO's industry had an average PEG ratio of 1.3 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.