Take-Two Interactive (TTWO) Stock Declines While Market Improves: Some Information for Investors

Take-Two Interactive (TTWO) ended the recent trading session at $242.92, demonstrating a -1.82% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.7%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 1%.

The stock of publisher of "Grand Theft Auto" and other video games has fallen by 2.96% in the past month, lagging the Consumer Discretionary sector's gain of 2.33% and the S&P 500's loss of 0.49%.

The upcoming earnings release of Take-Two Interactive will be of great interest to investors. The company's earnings report is expected on August 7, 2026. It is anticipated that the company will report an EPS of $0.31, marking a 49.18% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.35 billion, indicating a 4.81% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.86 per share and revenue of $8.56 billion. These totals would mark changes of +67.32% and +27.31%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Take-Two Interactive. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.2% increase. Currently, Take-Two Interactive is carrying a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Take-Two Interactive is currently exchanging hands at a Forward P/E ratio of 36.08. This denotes a premium relative to the industry average Forward P/E of 17.48.

Also, we should mention that TTWO has a PEG ratio of 3.61. 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 Gaming industry currently had an average PEG ratio of 1.31 as of yesterday's close.

Story Continues

The Gaming industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 22% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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