Take-Two Interactive’s TTWO Private Division and gaming developer, V1 Interactive recently released Disintegration, a hybrid first-person shooter and real-time strategy game that pits a small squad of robotic heroes against an array of armies in a bid to save humanity.
Priced at $49.99, Disintegration is available digitally for PS4, Xbox One, and PC on Steam and other digital storefronts. Notably, the game’s dual genre combination has received multiple critical acclaims.
Expanding Portfolio Stokes Top-Line Growth
Take-Two has been one of the top-performing gaming stocks on a year-to-date basis. Shares have returned 13.5%, outperforming the S&P 500 Index on a year-to-date basis.
Disintegration is the latest addition to Take-Two’s solid portfolio of games and is likely to drive the company’s top line in the near term.
TakeTwo Interactive Software, Inc. Price and Consensus
TakeTwo Interactive Software, Inc. price-consensus-chart | TakeTwo Interactive Software, Inc. Quote
In the fiscal fourth quarter, the company’s revenues rose 41.1% year over year to $760.5 million. The upside can be attributed to solid performance of games like NBA 2K20 and NBA 2K19, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Borderlands 3 and Sid Meier’s Civilization VI.
Take Two’s strong momentum is expected to continue due to increased consumer spending and active user hours on video games, stemming from coronavirus induced stay-at-home orders.
Moreover, the release of The Outer Worlds and Sid Meier's Civilization VI -Frontier Pass and upcoming releases such as Private Division’s Kerbal Space Program: Shared Horizons free update for PC, 2K’s PGA Tour 2K21 and Mafia I for PS4, Xbox One and PC are expected to boost user engagement and bode well for the company’s prospects.
Take Two faces significant competition from the likes of Electronic Arts EA, Nintendo NTDOY and Activision Blizzard ATVI, among others.
Notably, EA’s Apex Legends, NBA Live 20, Plants vs. Zombies, and Star Wars Jedi: Fallen Order have gained popularity. Moreover, Nintendo stated that Animal Crossing: New Horizons, which released on Mar 20, sold more than 13.41 million copies in its first six weeks.
Activision is not far behind, with both Call of Duty: Modern Warfare and Call of Duty: Warzone becoming huge successes. Further, EA’s latest releases of Star Wars: Squadrons and Command & Conquer Remastered Collection with its enhanced features, as well as Activision’s Shadowlands expansion for World of Warcraft are expected to intensify competition in the market.
Nevertheless, Take Two, which currently carries a Zack Rank #3 (Hold), is well poised to benefit from its franchise strength, exciting content and constant stream of new releases.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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