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Take-Two Interactive Software (NASDAQ:TTWO) shareholders are up 4.5% this past week, but still in the red over the last year

While not a mind-blowing move, it is good to see that the Take-Two Interactive Software, Inc. (NASDAQ:TTWO) share price has gained 19% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 23% in a year, falling short of the returns you could get by investing in an index fund.

The recent uptick of 4.5% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for Take-Two Interactive Software

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

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Take-Two Interactive Software fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. However, there may be an opportunity for investors if the company can recover.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
earnings-per-share-growth

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Take-Two Interactive Software's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 11% in the twelve months, Take-Two Interactive Software shareholders did even worse, losing 23%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Take-Two Interactive Software better, we need to consider many other factors. For instance, we've identified 1 warning sign for Take-Two Interactive Software that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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