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Here's Why Take-Two Interactive (TTWO) Gained But Lagged the Market Today

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Take-Two Interactive (TTWO - Free Report) closed the latest trading day at $152.94, indicating a +0.48% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.97% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.45%.

Shares of the publisher of "Grand Theft Auto" and other video games witnessed a loss of 2.63% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 6.03% and the S&P 500's gain of 5.41%.

Investors will be eagerly watching for the performance of Take-Two Interactive in its upcoming earnings disclosure. On that day, Take-Two Interactive is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 65.85%. Simultaneously, our latest consensus estimate expects the revenue to be $1.45 billion, showing a 0.34% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.53 per share and a revenue of $5.61 billion, demonstrating changes of +0.8% and +5.28%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.92% higher. Take-Two Interactive currently has a Zacks Rank of #2 (Buy).

In the context of valuation, Take-Two Interactive is at present trading with a Forward P/E ratio of 60.24. This denotes a premium relative to the industry's average Forward P/E of 15.96.

We can additionally observe that TTWO currently boasts a PEG ratio of 1.85. 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. The Toys - Games - Hobbies was holding an average PEG ratio of 1.26 at yesterday's closing price.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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