Take-Two Interactive has floundered for much of 2022
When we last checked in with Take-Two Interactive Software, Inc. (NASDAQ:TTWO) the video game stock was getting crushed after the company's dismal guidance. Now, a little less than two months later, TTWO is facing off with a key trendline.
At last check, Take-Two stock was down 0.3% to trade at $153.35. Looming overhead is TTWO's 50-day moving average. The equity is off by 13.4% in 2022, but has come off its March 15 annual bottom of $133.54. Don't be surprised if overdue bear notes weigh on TTWO. Of the 16 brokerages covering the stock, 14 rate it a "buy" or better, with zero "sells" on the books.
Moreover, the gaming entertainment company has increased their annual revenues and net income by 28% and 58%, respectively, since fiscal 2019. However, TTWO's trailing 12-month revenues are up by just 1% and its trailing 12-month net income has decreased by 11% since fiscal 2021. In addition, Take-Two stock offers a relatively high valuation at a forward price-earnings ratio of 24.15 and a price-sales ratio of 5.42.
Still, Take-Two stock is in a great position fundamentally with $2.47 billion in cash and $244.13 million in total debt on their balance sheet. TTWO is also estimated to grow their revenues by 16.8% and their earnings by 28.1% in fiscal 2023, after a weak financial year prior, potentially setting TTWO up as a recovery play, if that trendline can be toppled.