TTWO

Take-Two Interactive (TTWO) closed down 2.01% and underperformed the S&P 500 over the past month. The company faces near-term headwinds with expected Q3 EPS declining 43.15% year-over-year, though full-year 2026 estimates project strong growth of 71.71% in earnings.

Trading at a Forward P/E of 29.74, significantly above the industry average of 15.01, TTWO holds a Zacks Rank #3 (Hold) rating. The Gaming industry ranks in the bottom 35% of sectors.

Take-Two Interactive (TTWO) is positioned for significant growth with the upcoming release of Grand Theft Auto VI on November 19th, 2026. Building on GTA 5's massive success of nearly 230 million copies sold, the new title is priced at $79.99 and expected to drive approximately 20% growth in FY27 net bookings.

Management forecasts $8.0-$8.2 billion in net bookings for FY27, with consensus estimates showing 71% earnings growth in FY27 and 40% in FY28. The stock's current valuation of 24.4X forward earnings is below its five-year median of 37.3X, suggesting upside potential.

Take-Two Interactive (TTWO) is positioned for significant growth with the November 19th release of Grand Theft Auto VI. Building on GTA 5's massive success—nearly 230 million copies sold and over a decade of monetization—GTA 6 is expected to drive major revenue acceleration.

The company forecasts $8.0-$8.2 billion in net bookings for FY27, representing ~20% growth, with consensus estimates showing 71% earnings growth in FY27 and 40% in FY28. Trading at 24.4X forward earnings, well below the five-year median of 37.3X, the stock appears undervalued given the growth catalyst.