Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Shares of GameStop Corporation (GME - Analyst Report) surged to attain a new 52-week high of $44.14 on Jul 17, 2013, before closing at $43.48. Shares of this Zacks Rank #3 (Hold) stock have amassed a year-to-date return of roughly 72.7%.

Based on the current price, this video game and entertainment software retailer is 4.5% above the Zacks Consensus average analyst price target of $41.61. The company currently trades at a forward P/E of 13.97x, in line with the peer group average. Additionally, the company’s long-term estimated EPS growth rate is 13.7%.

GameStop is well positioned to take the advantage of the growing market for video game products and PC entertainment software. The company’s strategy is to branch out through store expansions in favorable localities by providing the largest title collection of video games and leveraging its first-to-market distribution network to offer the latest hardware and software releases.

GameStop has been evolving continuously and transformed as a mixed retailer of physical and digital gaming and electronic products. The company’s ventures in digital, iDevice and gaming tablet businesses are expected to be accretive to its results.

Moreover, shares of GameStop have reacted positively to the announcement made by Microsoft Corporation (MSFT - Analyst Report) that Xbox One is enabled to play used games and is not going to levy platform fee, thus enabling the smooth transfer of used and pre-owned games. GameStop’s buy-sell-trade model of selling new games and buying back used games and PowerUp Rewards program make it a popular destination for gamers.

GameStop is not the only company that is anticipated to benefit from this, as the move is likely to auger well for game publishers like Electronic Arts Inc. (EA) as well.

Alongside, shares of Lowe’s Companies Inc. (LOW - Analyst Report) reached a new 52-week high of $44.51 on Jul 17, and eventually closed trade at $44.26.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%