U.S. Markets open in 9 hrs 13 mins
  • S&P Futures

    3,452.50
    +3.25 (+0.09%)
     
  • Dow Futures

    28,284.00
    +16.00 (+0.06%)
     
  • Nasdaq Futures

    11,669.75
    +20.00 (+0.17%)
     
  • Russell 2000 Futures

    1,632.70
    +2.10 (+0.13%)
     
  • Crude Oil

    40.62
    -0.02 (-0.05%)
     
  • Gold

    1,908.60
    +4.00 (+0.21%)
     
  • Silver

    24.75
    +0.04 (+0.15%)
     
  • EUR/USD

    1.1806
    -0.0020 (-0.1653%)
     
  • 10-Yr Bond

    0.8480
    +0.0320 (+3.92%)
     
  • Vix

    28.11
    -0.54 (-1.88%)
     
  • GBP/USD

    1.3061
    -0.0019 (-0.1450%)
     
  • USD/JPY

    104.7100
    -0.1300 (-0.1240%)
     
  • BTC-USD

    12,968.31
    +63.33 (+0.49%)
     
  • CMC Crypto 200

    261.46
    +5.36 (+2.09%)
     
  • FTSE 100

    5,785.65
    +9.15 (+0.16%)
     
  • Nikkei 225

    23,555.09
    +80.82 (+0.34%)
     

GameStop (GME) Has Risen 78% in Last One Year, Outperforms Market

Alex Smith
·4 mins read

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Gamestop Corp. (NYSE:GME) stock. In its Income Strategy Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Gamestop Corp. (NYSE:GME) stock. Gamestop Corp. (NYSE:GME) is a video game, consumer electronics and gaming merchandise retailer.

On July 17, 2019, Miller Value Partners had released its Income Strategy Q2 2019 investor letter. The investment firm said that Gamestop Corp. (NYSE:GME) was one of the biggest detractors to its performance in Q2 2019. Gamestop Corp. (NYSE:GME) stock has posted a return of 77.5% in the trailing one year period, outperforming the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Gamestop Corp. (NYSE:GME) stock has risen by 25.8%.

Let’s take a look at comments made by Miller Value Partners about Gamestop Corp. (NYSE:GME) stock in the Q2 2019 investor letter.

"GameStop (GME) was the top detractor over the quarter falling -46.16%. The company reported revenues of $1.55B, missing consensus of $1.64B driven by declines in new the hardware and pre-owned segments. EPS of $0.07 beat analyst estimates of a loss of $(0.03), but same-store sales of -10.3% were well below consensus of -6.9%. The company elected to eliminate the dividend and intends to re-allocate the capital to reduce debt and provide flexibility. Management reiterated prior topline guidance of -5% to -10% for both comp store sales and total revenue and maintained their target of $100M in profit improvement by 2020."

collection, console, consoles, controller, editorial, electronics, gamepad, games, gaming, heap, horizontal, isolated, joystick, microsoft, nes, nintendo, nobody, pile, playstation, retro, sega, sony, studio shot, system, systems, toys, video game, video games, white, white background, xbox
collection, console, consoles, controller, editorial, electronics, gamepad, games, gaming, heap, horizontal, isolated, joystick, microsoft, nes, nintendo, nobody, pile, playstation, retro, sega, sony, studio shot, system, systems, toys, video game, video games, white, white background, xbox

Copyright: robtek / 123RF Stock Photo

Last month, we published an article revealing that RF Capital Management is bullish about Gamestop Corp. (NYSE:GME) stock. The investment firm believes that the new console cycle and key software titles will help Gamestop return to profitability.

In Q1 2020, the number of bullish hedge fund positions on Gamestop Corp. (NYSE:GME) stock decreased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with Gamestop's growth potential. Our calculations showed that Gamestop Corp. (NYSE:GME) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost precious metals prices. So, we are checking out this junior gold mining stock. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.