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GameStop (GME) Stock Moves -0.23%: What You Should Know

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In the latest market close, GameStop (GME - Free Report) reached $21.88, with a -0.23% movement compared to the previous day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, added 0.21%.

The the stock of video game retailer has fallen by 15.82% in the past month, lagging the Consumer Discretionary sector's loss of 2.38% and the S&P 500's loss of 4.22%.

The investment community will be paying close attention to the earnings performance of GameStop in its upcoming release. The company's upcoming EPS is projected at -$0.01, signifying a 66.67% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $900 million, down 22.67% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.08 per share and a revenue of $4.13 billion, representing changes of +33.33% and -21.64%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for GameStop. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. GameStop is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, GameStop is holding a Forward P/E ratio of 274.13. This indicates a premium in contrast to its industry's Forward P/E of 18.94.

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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