Take-Two Interactive (TTWO - Free Report) closed at $94.11 in the latest trading session, marking a -1.22% move from the prior day. This move lagged the S&P 500's daily gain of 0.66%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 0.46%.
Coming into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 3.07% in the past month. In that same time, the Consumer Discretionary sector gained 2.95%, while the S&P 500 gained 3.97%.
Investors will be hoping for strength from TTWO as it approaches its next earnings release. The company is expected to report EPS of $0.78, up 13.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $508.22 million, up 23.54% from the year-ago period.
Investors might also notice recent changes to analyst estimates for TTWO. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TTWO currently has a Zacks Rank of #4 (Sell).
Digging into valuation, TTWO currently has a Forward P/E ratio of 19.39. For comparison, its industry has an average Forward P/E of 22.06, which means TTWO is trading at a discount to the group.
Investors should also note that TTWO has a PEG ratio of 1.11 right now. 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 1.86 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.
To follow TTWO in the coming trading sessions, be sure to utilize Zacks.com.