Strength Seen in Take-Two (TTWO): Can Its 3.8% Jump Turn into More Strength?
Take-Two Interactive (TTWO) shares ended the last trading session 3.8% higher at $163.12. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.5% gain over the past four weeks.
The upswing in share price came after the announcement that Take-Two Interactive will join the Nasdaq-100 index, effective Dec 18 before market opens. It will replace Seagen as part of the index’s annual reconstitution.
This publisher of "Grand Theft Auto" and other video games is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of -6.5%. Revenues are expected to be $1.34 billion, down 3.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Take-Two, the consensus EPS estimate for the quarter has been revised 11.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TTWO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Take-Two belongs to the Zacks Toys - Games - Hobbies industry. Another stock from the same industry, Nintendo Co. (NTDOY), closed the last trading session 1.2% higher at $12.02. Over the past month, NTDOY has returned 1%.
For Nintendo Co. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of -5.6% from what the company reported a year ago. Nintendo Co. currently has a Zacks Rank of #3 (Hold).
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Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
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