Wednesday, December 14, 2011

5-Star Stocks Poised to Pop: Take-Two

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game publisher Take-Two Interactive Software (Nasdaq: TTWO  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Take-Two's business and see what CAPS investors are saying about the stock right now.

Take-Two facts

Headquarters (Founded) New York (1993)
Market Cap $1.23 billion
Industry Multimedia and graphics software
Trailing-12-Month Revenue $957.9 million
Management Chairman/CEO Strauss Zelnick
CFO Lainie Goldstein
Trailing-12-Month Operating Margin (2.1%)
Cash/Debt $269.7 million / $111.3 million
Competitors Activision Blizzard (Nasdaq: ATVI  )
Electronic Arts (Nasdaq: ERTS  )
Microsoft (Nasdaq: MSFT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 1,247 members who have rated Take-Two believe the stock will outperform the S&P 500 going forward. These bulls include Insaineyesay and F111Driver. ?

Just last week, Insaineeyesay tapped Take-Two as a particularly timely pick:

[W]ith grand theft auto 5 and max payne 3 coming out [in 2012], I plan to see good things. This team has been coming out with great ! stuff fo r at least 5-8 years. I love their games. I back them up. [S]imple as that.

Over the next five years, in fact, Take Two is expected to grow its bottom line at a rapid rate of 23% annually. That's faster than rivals Activision Blizzard (14%), Electronic Arts (19%), and Microsoft (10%).

CAPS member F111Driver expands on the opportunity:

Looking for a significant bounce when they launch the next version of Grand Theft Auto in the fall of 2012. This is mainly a cyclical play, betting on the huge success of the GTA franchise. Like [Activision] and Call Of Duty except that [Take-Two] derives significantly more earnings [relatively from GTA]. ... I'm in with real money and plan on holding until shortly after launch results of GTA affect the price move.

What do you think about Take-Two, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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