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GameStop Touches New High

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Shares of GameStop Corp. (GME - Free Report) achieved a new 52-week high of $45.85 on Jul 26, 2013, before closing at $45.80. Shares of this Zacks Rank #3 (Hold) stock reaped a year-to-date return of roughly 82.0%.

The average volume of shares traded over the last 3 months was approximately 3,491K. Based on the current price, this video game and entertainment software retailer is 7.4% above the Zacks Consensus average analyst price target of $42.64.

The company currently trades at a forward P/E of 14.22x, a 38.1% discount to the industry average of 22.98x. Additionally, the company’s long-term estimated EPS growth rate is 14.7%.

GameStop is well positioned to take the advantage of the growing market for video game products and PC entertainment software. The company aims to drive store expansion in favorable localities by providing the largest title collection of video games Its strategy also involves leveraging its first-to-market distribution network to offer the latest hardware and software releases.

GameStop has been upgrading continuously and has evolved as a mixed retailer of physical and digital gaming as well as 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 were positively impacted by Microsoft Corporation's (MSFT - Free Report) announcement 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 repurchasing 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 aforementioned declaration. It is likely to auger well for game publishers such as Electronic Arts Inc. (EA - Free Report) as well.

Alongside, shares of L Brands, Inc. reached a new 52-week high of $53.77 on Jul 26, and eventually closed trade at $53.68.

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