GameStop (GME) Stock Sinks As Market Gains: What You Should Know
GameStop (GME) closed the most recent trading day at $135.95, moving -1.64% from the previous trading session. This change lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the video game retailer had lost 9.04% over the past month, lagging the Retail-Wholesale sector's loss of 7.64% and the S&P 500's loss of 5.26% in that time.
GameStop will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.37, down 204.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, up 5.95% from the prior-year quarter.
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. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 246, putting it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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