GameStop (GME) Stock Sinks As Market Gains: What You Should Know
GameStop (GME) closed at $129.31 in the latest trading session, marking a -0.41% move from the prior day. This change lagged the S&P 500's 2.48% gain on the day. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the video game retailer had lost 22.18% over the past month, lagging the Retail-Wholesale sector's loss of 8.14% and the S&P 500's loss of 7.81% in that time.
Investors will be hoping for strength from GameStop as it approaches its next earnings release. The company is expected to report EPS of -$1.37, down 204.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 5.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.93 per share and revenue of $6.38 billion. These totals would mark changes of -8.11% and +6.22%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GameStop. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GameStop is currently a Zacks Rank #5 (Strong Sell).
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% 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.
To follow GME in the coming trading sessions, be sure to utilize Zacks.com.
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