The most recent trading session ended with GameStop (GME) standing at $29.45, reflecting a -1.67% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.83%.
The the stock of video game retailer has risen by 15.15% in the past month, leading the Consumer Discretionary sector's gain of 6.96% and the S&P 500's gain of 5.17%.
Market participants will be closely following the financial results of GameStop in its upcoming release. The company plans to announce its earnings on June 10, 2025. The company is forecasted to report an EPS of $0.08, showcasing a 166.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $750 million, indicating a 14.95% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.47 per share and revenue of $3.4 billion, indicating changes of +42.42% and -11.06%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for GameStop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained unchanged. GameStop is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, GameStop currently has a Forward P/E ratio of 63.72. This denotes a premium relative to the industry's average Forward P/E of 18.35.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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