Take-Two Interactive Stock Moves -0.25%: What You Should Know

Take-Two Interactive TTWO closed the most recent trading day at $154.98, moving -0.25% from the previous trading session. The stock's performance was in sync with S&P 500. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq lost 0.79%.

Heading into today, shares of the publisher of "Grand Theft Auto" and other video games had gained 3.16% over the past month, outpacing the Consumer Discretionary sector's gain of 0.82% and lagging the S&P 500's gain of 3.59% in that time.

The investment community will be closely monitoring the performance of Take-Two Interactive in its forthcoming earnings report. The company is forecasted to report an EPS of $0.01, showcasing a 97.22% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.24 billion, up 2.79% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.52 per share and revenue of $5.64 billion, which would represent changes of +0.4% and +5.67%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Take-Two Interactive. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.9% upward. Take-Two Interactive is currently sporting a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Take-Two Interactive is currently exchanging hands at a Forward P/E ratio of 61.56. This indicates a premium in contrast to its industry's Forward P/E of 17.31.

We can also see that TTWO currently has a PEG ratio of 1.9. 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. TTWO's industry had an average PEG ratio of 1.38 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% 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.

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