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Take-Two Interactive (TTWO) Stock Slides as Market Rises: Facts to Know Before You Trade

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Take-Two Interactive (TTWO - Free Report) ended the recent trading session at $160.80, demonstrating a -0.61% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.26%.

Shares of the publisher of "Grand Theft Auto" and other video games have appreciated by 5.71% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 1.51% and the S&P 500's gain of 2%.

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 is predicted to post an EPS of $0.42, indicating a 65.85% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.44 billion, down 0.48% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.52 per share and revenue of $5.62 billion, indicating changes of +0.4% and +5.29%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Take-Two Interactive should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has shifted 4.81% downward. Right now, Take-Two Interactive possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Take-Two Interactive is presently trading at a Forward P/E ratio of 64.32. This signifies a premium in comparison to the average Forward P/E of 14.92 for its industry.

Meanwhile, TTWO's PEG ratio is currently 1.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Toys - Games - Hobbies industry had an average PEG ratio of 1.03 as trading concluded yesterday.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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