GameStop (GME) Dips More Than Broader Markets: What You Should Know

In this article:

GameStop (GME) closed the most recent trading day at $21.40, moving -1.2% from the previous trading session. This change lagged the S&P 500's 0.07% loss on the day. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq lost 3.22%.

Coming into today, shares of the video game retailer had gained 7.87% in the past month. In that same time, the Retail-Wholesale sector gained 8.58%, while the S&P 500 gained 4.64%.

GameStop will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.16, up 65.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.17 billion, down 3.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.34 per share and revenue of $5.87 billion, which would represent changes of -17.54% and -2.36%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GameStop. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.3% higher. GameStop is currently a Zacks Rank #2 (Buy).

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

GameStop Corp. (GME) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement