Will "Grand Theft Auto" Continue to Push Take-Two Interactive Stock Higher?
Like other major video-game publishers, Take-Two Interactive (NASDAQ: TTWO) is benefiting from selling games directly to consumers through digital downloads, but even that tailwind pales in comparison with the company's biggest performance driver. That's not to downplay the significance of the digital sales transition, but the publisher's high-flying stock run in recent years has even more to do with the ongoing success of Grand Theft Auto V.
Take-Two's shares are up more than 800% over the past five years and trade at a whopping 43 times forward earnings estimates. However, its forward price-to-earnings-growth ratio is just 0.2, so the stock actually looks cheap if the company can continue deliver impressive earnings gains. Much of that will come down to how much gas the Grand Theft Auto series has left in the tank.
Image source: Take-Two Interactive.
Source: Fool.com