Video game retailer GameStop GME is set to report Q1 earnings results next week on Tuesday after the closing bell. GameStop, a Zacks Rank #3 (Hold), has exceeded the earnings mark in two of the last three quarters. With shares surging over the past 2 months, is GME a buy prior to the release?
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Analysts covering GameStop are expecting the company to post a profit of 8 cents per share, reflecting a 166.7% improvement relative to the same quarter last year. Sales are projected to decline 15% to $750 million. GameStop averaged a 138% positive earnings surprise over the past four quarters.
GME shares have risen more than 50% off the April lows. The video game retailer made waves recently by announcing strategic Bitcoin purchases.
The stock is still heavily overvalued based on traditional valuation metrics. Traders would be wise to exercise caution ahead of the Q1 announcement.
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GameStop Corp. (GME): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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