GameStop (GME) closed the most recent trading day at $26.34, moving +1.35% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.04%. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Coming into today, shares of the video game retailer had lost 7.05% in the past month. In that same time, the Consumer Discretionary sector gained 8.54%, while the S&P 500 gained 3.92%.
The investment community will be paying close attention to the earnings performance of GameStop in its upcoming release. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 59.09% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.45 billion, indicating a 19.16% decrease compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for GameStop. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GameStop currently has a Zacks Rank of #3 (Hold).
Digging into valuation, GameStop currently has a Forward P/E ratio of 144.39. This denotes a premium relative to the industry's average Forward P/E of 18.06.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
GameStop Corp. (GME) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
