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GameStop (GME) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, GameStop (GME) closed at $211.78, marking a -0.99% move from the previous day. This move lagged the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.09%.

Heading into today, shares of the video game retailer had gained 20.28% over the past month, outpacing the Retail-Wholesale sector's gain of 1.44% and the S&P 500's gain of 3.34% in that time.

Investors will be hoping for strength from GameStop as it approaches its next earnings release. On that day, GameStop is projected to report earnings of -$0.22 per share, which would represent year-over-year growth of 58.49%. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 29.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.27 per share and revenue of $5.77 billion, which would represent changes of +87.38% and +13.3%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GameStop. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GameStop is holding a Zacks Rank of #3 (Hold) right now.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow GME in the coming trading sessions, be sure to utilize Zacks.com.


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