U.S. Markets close in 4 hrs 53 mins

GameStop shares up ahead of earnings

The Associated Press

GameStop Corp.'s shares jumped Monday ahead of the video-game retailer's quarterly earnings report.

THE SPARK: GameStop is scheduled to report its third-quarter results later this week. While the market expectations are for a decline in profit, some analysts said that they are optimistic about the company's long-term potential.

THE BIG PICTURE: GameStop shares had a brief sell-off late last week but investors who are bullish on the stock saw the downturn as a buying opportunity.

THE ANALYSIS: Janney Capital Markets analyst Tony Wible reiterated a "Buy" rating on GameStop. He said the company's is at its peak market share position just ahead of a round of next-generation games. That includes a new "Call of Duty" video game that is expected in time for the holiday sales. The retailer's revenue is also improving on its high-margin iDevice business, which allows people to trade-in or sell their old iPhones, iPads and other products that it can then resell.

SHARE ACTION: The stock rose 98 cents, more than 4 percent, to close at $23.09. The gain roughly makes up for a 4 percent loss of the stock's value last week. The stock is up 30 percent in the past three months.