Zacks Equity Research
3 min read
In the latest close session, Take-Two Interactive (TTWO) was up +1.5% at $247.62. The stock’s change was more than the S&P 500’s daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
The publisher of “Grand Theft Auto” and other video games’s shares have seen a decrease of 1.29% over the last month, not keeping up with the Consumer Discretionary sector’s loss of 0.15% and the S&P 500’s gain of 1.7%.
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 August 7, 2026. The company is expected to report EPS of $0.31, down 49.18% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.35 billion, indicating a 4.81% decrease compared to the same quarter of the previous year.
TTWO’s full-year Zacks Consensus Estimates are calling for earnings of $6.77 per share and revenue of $8.56 billion. These results would represent year-over-year changes of +65.12% and +27.31%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.08% higher within the past month. Take-Two Interactive is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Take-Two Interactive is holding a Forward P/E ratio of 36.03. For comparison, its industry has an average Forward P/E of 18.7, which means Take-Two Interactive is trading at a premium to the group.
We can additionally observe that TTWO currently boasts a PEG ratio of 3.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As of the close of trade yesterday, the Gaming industry held an average PEG ratio of 1.25.
