This story originally appeared on Zacks

Take-Two Interactive (TTWO) closed at $179.39 in the latest trading session, marking a -0.09% move from the prior day. This change was narrower than the S&P 500’s 0.1% loss on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Prior to today’s trading, shares of the publisher of “Grand Theft Auto” and other video games had gained 5.87% over the past month. This has outpaced the Consumer Discretionary sector’s loss of 1.14% and the S&P 500’s gain of 4.4% in that time.

Wall Street will be looking for positivity from Take-Two Interactive as it approaches its next earnings report date. In that report, analysts expect Take-Two Interactive to post earnings of $1.14 per share. This would mark a year-over-year decline of 8.8%. Our most recent consensus estimate is calling for quarterly revenue of $879.18 million, up 7.97% from the year-ago period.

TTWO’s full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $3.47 billion. These results would represent year-over-year changes of -32.02% and -2.3%, respectively.

Investors might also notice recent changes to analyst estimates for Take-Two Interactive. These revisions help to show the ever-changing nature of 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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Take-Two Interactive is currently a Zacks Rank #3 (Hold).

In terms of valuation, Take-Two Interactive is currently trading at a Forward P/E ratio of 37.25. Its industry sports an average Forward P/E of 18.85, so we one might conclude that Take-Two Interactive is trading at a premium comparatively.

We can also see that TTWO currently has a PEG ratio of 3.39. 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 2.25 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 175, putting it in the bottom 32% 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.

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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