GameStop (GME) closed at $23.68 in the latest trading session, marking a +1.98% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.
Prior to today's trading, shares of the video game retailer had gained 1% lagged the Consumer Discretionary sector's gain of 5.77% and the S&P 500's gain of 4.51%.
Analysts and investors alike will be keeping a close eye on the performance of GameStop in its upcoming earnings disclosure. On that day, GameStop is projected to report earnings of $0.19 per share, which would represent year-over-year growth of 1800%. Alongside, our most recent consensus estimate is anticipating revenue of $900 million, indicating a 12.74% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.75 per share and revenue of $3.58 billion. These totals would mark changes of +127.27% and -6.29%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for GameStop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, GameStop possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, GameStop is holding a Forward P/E ratio of 30.96. This represents a premium compared to its industry average Forward P/E of 24.12.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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GameStop Corp. (GME): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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