Latest news with #TTWO
Yahoo
5 days ago
- Business
- Yahoo
Is It Worth Investing in Take-Two (TTWO) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Take-Two Interactive (TTWO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Take-Two currently has an average brokerage recommendation (ABR) of 1.23, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.23 approximates between Strong Buy and Buy. Of the 26 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 84.6% and 7.7% of all recommendations. Check price target & stock forecast for Take-Two here>>>The ABR suggests buying Take-Two, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. In terms of earnings estimate revisions for Take-Two, the Zacks Consensus Estimate for the current year has declined 80.1% over the past month to $3.62. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Take-Two. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Take-Two with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Roth MKM Maintains a Buy Rating on Take-Two Interactive (TTWO)
In a report released on May 19, Eric Handler from Roth MKM maintained a Buy rating on Take-Two Interactive Software, Inc. (NASDAQ:TTWO), with a price target of $265.00. The rating update came after the company reported its fiscal Q4 2025 earnings on May 16. A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company. Analysts are bullish on Take-Two Interactive Software, Inc. (NASDAQ:TTWO) because of its notable results for fiscal year 2025. Net bookings for Q4 2025 reached $1.58 billion, at the top of its guidance range. The strong performance was attributed to all of its labels, including NBA 2 K, which delivered one of its strongest on-record periods with recurrent consumer spending growth of 42%. Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) initial financial outlook for fiscal 2026 reflects a continuation of its current positive trends, with net bookings of $5.9 billion to $6 billion, reflecting a 5% year-over-year increase at the midpoint of the range. While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
1 Large-Cap Stock to Target This Week and 2 to Brush Off
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players. This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose existing offerings may be tapped out. Market Cap: $40.1 billion Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world's largest video game publishers. Why Does TTWO Give Us Pause? EBITDA margin fell by 8.3 percentage points over the last few years as it prioritized growth over profits Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 109% annually Increased cash burn over the last few years raises questions about the return timeline for its investments Take-Two's stock price of $225.83 implies a valuation ratio of 19.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including TTWO in your portfolio, it's free. Market Cap: $110.2 billion Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE:LMT) specializes in defense, space, homeland security, and information technology products. Why Is LMT Risky? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.3% for the last five years Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew Shrinking returns on capital suggest that increasing competition is eating into the company's profitability At $471 per share, Lockheed Martin trades at 16.7x forward P/E. Check out our free in-depth research report to learn more about why LMT doesn't pass our bar. Market Cap: $36.4 billion Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE:CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain. Why Are We Fans of CAH? Massive revenue base of $222.3 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power Estimated revenue growth of 8.4% for the next 12 months implies demand will accelerate from its two-year trend Earnings growth has topped the peer group average over the last five years as its EPS has compounded at 7.7% annually Cardinal Health is trading at $153.48 per share, or 17.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Roth MKM Maintains a Buy Rating on Take-Two Interactive (TTWO)
In a report released on May 19, Eric Handler from Roth MKM maintained a Buy rating on Take-Two Interactive Software, Inc. (NASDAQ:TTWO), with a price target of $265.00. The rating update came after the company reported its fiscal Q4 2025 earnings on May 16. A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company. Analysts are bullish on Take-Two Interactive Software, Inc. (NASDAQ:TTWO) because of its notable results for fiscal year 2025. Net bookings for Q4 2025 reached $1.58 billion, at the top of its guidance range. The strong performance was attributed to all of its labels, including NBA 2 K, which delivered one of its strongest on-record periods with recurrent consumer spending growth of 42%. Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) initial financial outlook for fiscal 2026 reflects a continuation of its current positive trends, with net bookings of $5.9 billion to $6 billion, reflecting a 5% year-over-year increase at the midpoint of the range. While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Take-Two Interactive (TTWO) Raises $1.0 Billion in Equity
After the market closed on Tuesday, Take-Two Interactive Software Inc. (NASDAQ:TTWO) announced its offer to raise around $1.0 billion by the sale of 4.75 million new shares at $225 per share in a public offering. While the company hasn't mentioned any specific usage of the funds raised, it plans to use the net proceeds from this offering for general corporate purposes, which may include debt repayment or future acquisitions. In line with the pricing of the new shares, the share price was down around 4% in the after-hours trading, at the time of writing. A gamer playing a game on one of the specialty retail company's gaming platforms. Last Friday, Take-Two reported a healthy set of results for Q4 2025 (FY ends in March). The quarterly net bookings of $1.58 billion (+17% year-over-year) came in 2% ahead of expectations and were supported by continued traction in its games, such as NBA 2K25 and Grand Theft Auto Online. On a slightly negative note, adjusted EPS of $1.08 trailed expectations of $1.12. The company guided for FY 2026 net bookings of around $5.95 billion, below the consensus of $7.8 billion. However, the guidance factors in the impact from the delay of the release of Grand Theft Auto VI from late 2025 to May 2026, which was already announced a few weeks ago. Following the results, an analyst from Benchmark reiterated his Buy rating on Take-Two and raised his price target on the shares to $250, up from $225 earlier. The analyst called the results a strong finish to the year with strength across the core businesses. Take-Two Interactive Software Inc. (NASDAQ:TTWO) is a leading video game company that develops, publishes, and markets interactive entertainment for consumers worldwide principally through publishing labels of Rockstar Games, 2K, and Zynga. While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
