GameStop (GME) closed the most recent trading day at $22.36, moving -1.43% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.44%.
The video game retailer's stock has dropped by 1.31% in the past month, falling short of the Consumer Discretionary sector's gain of 2.08% and the S&P 500's gain of 0.87%.
Analysts and investors alike will be keeping a close eye on the performance of GameStop in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.19, signifying a 1,800.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $900 million, indicating a 12.74% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.75 per share and a revenue of $3.58 billion, representing changes of +127.27% and -6.29%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, GameStop holds a Zacks Rank of #3 (Hold).
In the context of valuation, GameStop is at present trading with a Forward P/E ratio of 30.24. This valuation marks a premium compared to its industry average Forward P/E of 23.3.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on 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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