In the latest trading session, GameStop (GME) closed at $23.96, marking a -1.24% move from the previous day. This change lagged the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.
Heading into today, shares of the video game retailer had gained 4.16% over the past month, lagging the Consumer Discretionary sector's gain of 4.9% and the S&P 500's gain of 5.88%.
The investment community will be closely monitoring the performance of GameStop in its forthcoming earnings report. The company is predicted to post an EPS of $0.19, indicating a 1800% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $900 million, indicating a 12.74% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.75 per share and a revenue of $3.58 billion, demonstrating changes of +127.27% and -6.29%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for GameStop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, there's been no change in the Zacks Consensus EPS estimate. GameStop is currently a Zacks Rank #3 (Hold).
With respect to valuation, GameStop is currently being traded at a Forward P/E ratio of 32.35. This represents a premium compared to its industry average Forward P/E of 23.06.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% 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.
To follow GME in the coming trading sessions, be sure to utilize Zacks.com.
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GameStop Corp. (GME): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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