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GameStop (GME) Stock Moves -0.04%: What You Should Know

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GameStop (GME - Free Report) closed the latest trading day at $26.77, indicating a -0.04% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 2.36%. Meanwhile, the Dow experienced a drop of 2.48%, and the technology-dominated Nasdaq saw a decrease of 2.55%.

Shares of the video game retailer witnessed a gain of 8.2% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 7.05% and the S&P 500's loss of 5.6%.

Analysts and investors alike will be keeping a close eye on the performance of GameStop in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.08, signifying a 166.67% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $750 million, showing a 14.95% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.47 per share and a revenue of $3.4 billion, signifying shifts of +42.42% and -11.06%, respectively, from the last year.

Any recent changes to analyst estimates for GameStop should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 161.11% upward. GameStop is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note GameStop's current valuation metrics, including its Forward P/E ratio of 56.98. Its industry sports an average Forward P/E of 15.42, so one might conclude that GameStop is trading at a premium comparatively.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 42% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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