Is Take-Two Still a Bargain?

With shares of Take-Two Interactive Software (NASDAQ:TTWO) trading at around $14.30, is TTWO an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Take-Two is soaring today. Q3 EPS came in at $0.66, which was a big improvement over the same quarter last year when EPS came in at $0.16. Net revenue was up 76 percent to $415.8 million. Guidance was also strong. Furthermore, Take-Two plans on repurchasing up to 7.5 million shares.

The big news was “NBA 2K13.” There have already been 15 million copies shipped. There are two reasons for the outstanding results. One, Take-Two really focused on quality with this game, which has led to exceptional reviews from gamers. Two, Electronic Arts Inc. (NASDAQ:EA) cancelled its rival basketball title. The best part about this situation isn’t just the present, but the future. Now that Take-Two will be stealing some basketball gaming enthusiasts, it will have an opportunity to lock up that market going forward. “Borderlands 2” has also performed well. The next “Grand Theft Auto” game is due out on September 17. If this release goes well, Take-Two will find itself firmly in the driver’s seat.

Let’s take a lot at some important numbers prior to forming an opinion on this stock…