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GameStop (GME) Surpasses Market Returns: Some Facts Worth Knowing
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GameStop (GME - Free Report) closed at $22.66 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1.39%.
The video game retailer's stock has dropped by 10.29% in the past month, falling short of the Consumer Discretionary sector's loss of 2.32% and the S&P 500's loss of 1.85%.
Market participants will be closely following the financial results of GameStop in its upcoming release. In that report, analysts expect GameStop to post earnings of -$0.01 per share. This would mark year-over-year growth of 66.67%. At the same time, our most recent consensus estimate is projecting a revenue of $900 million, reflecting a 22.67% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.08 per share and revenue of $4.13 billion, indicating changes of +33.33% and -21.64%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for GameStop. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, GameStop possesses a Zacks Rank of #3 (Hold).
In the context of valuation, GameStop is at present trading with a Forward P/E ratio of 280. This signifies a premium in comparison to the average Forward P/E of 19.17 for its industry.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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GameStop (GME) Surpasses Market Returns: Some Facts Worth Knowing
GameStop (GME - Free Report) closed at $22.66 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1.39%.
The video game retailer's stock has dropped by 10.29% in the past month, falling short of the Consumer Discretionary sector's loss of 2.32% and the S&P 500's loss of 1.85%.
Market participants will be closely following the financial results of GameStop in its upcoming release. In that report, analysts expect GameStop to post earnings of -$0.01 per share. This would mark year-over-year growth of 66.67%. At the same time, our most recent consensus estimate is projecting a revenue of $900 million, reflecting a 22.67% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.08 per share and revenue of $4.13 billion, indicating changes of +33.33% and -21.64%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for GameStop. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, GameStop possesses a Zacks Rank of #3 (Hold).
In the context of valuation, GameStop is at present trading with a Forward P/E ratio of 280. This signifies a premium in comparison to the average Forward P/E of 19.17 for its industry.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.