The most recent trading session ended with GameStop (GME) standing at $26.70, reflecting a -1.04% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the video game retailer had gained 14.81% over the past month. This has outpaced the Consumer Discretionary sector's loss of 6.68% and the S&P 500's loss of 3.94% in that time.
The investment community will be closely monitoring the performance of GameStop in its forthcoming earnings report. In that report, analysts expect GameStop to post earnings of $0.08 per share. This would mark year-over-year growth of 166.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $750 million, indicating a 14.95% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.47 per share and a revenue of $3.4 billion, signifying shifts of +42.42% and -11.06%, respectively, from the last year.
Any recent changes to analyst estimates for GameStop should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 161.11% higher. As of now, GameStop holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, GameStop is holding a Forward P/E ratio of 57.4. This represents a premium compared to its industry's average Forward P/E of 15.51.
The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 135, placing it within the bottom 46% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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