Take-Two Interactive (TTWO) closed the most recent trading day at $109.57, moving -0.72% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the publisher of "Grand Theft Auto" and other video games had lost 13.42% over the past month. This has lagged the Consumer Discretionary sector's loss of 12.39% and the S&P 500's loss of 10.4% in that time.
Take-Two Interactive will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.39, down 12.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 55.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.96 per share and revenue of $5.86 billion. These totals would mark changes of -6.24% and +71.81%, respectively, from last year.
Any recent changes to analyst estimates for Take-Two Interactive should also be noted by investors. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.86% lower within the past month. Take-Two Interactive is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Take-Two Interactive has a Forward P/E ratio of 22.25 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.34.
It is also worth noting that TTWO currently has a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.68 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 97, which puts it in the top 39% 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.
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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TakeTwo Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
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