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Take-Two Interactive (TTWO) Increases Despite Market Slip: Here's What You Need to Know

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Take-Two Interactive (TTWO - Free Report) closed the most recent trading day at $156.88, moving +1.04% from the previous trading session. This change outpaced the S&P 500's 0.18% loss on the day. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq increased by 0.27%.

Prior to today's trading, shares of the publisher of "Grand Theft Auto" and other video games had gained 4.36% over the past month. This has lagged the Consumer Discretionary sector's gain of 8.02% and the S&P 500's gain of 4.46% in that time.

Investors will be eagerly watching for the performance of Take-Two Interactive in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2024. The company's upcoming EPS is projected at $0.42, signifying a 65.85% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.44 billion, down 0.43% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.52 per share and a revenue of $5.62 billion, indicating changes of +0.4% and +5.35%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Take-Two Interactive. These revisions help to show the ever-changing nature of 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.5% increase. Currently, Take-Two Interactive is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Take-Two Interactive is currently trading at a Forward P/E ratio of 61.63. For comparison, its industry has an average Forward P/E of 15.86, which means Take-Two Interactive is trading at a premium to the group.

It is also worth noting that TTWO currently has a PEG ratio of 1.9. 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. By the end of yesterday's trading, the Toys - Games - Hobbies industry had an average PEG ratio of 1.04.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 183, this industry ranks in the bottom 28% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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