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GameStop (GME) Dips More Than Broader Markets: What You Should Know

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GameStop (GME - Free Report) closed at $118.18 in the latest trading session, marking a -1.84% move from the prior day. This move lagged the S&P 500's daily loss of 0.81%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 1.69%.

Heading into today, shares of the video game retailer had lost 68.7% over the past month, lagging the Retail-Wholesale sector's loss of 1.84% and the S&P 500's gain of 3.56% in that time.

Investors will be hoping for strength from GME as it approaches its next earnings release. The company is expected to report EPS of $1.46, up 14.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.24 billion, up 2.19% from the year-ago period.

Investors might also notice recent changes to analyst estimates for GME. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GME is currently a Zacks Rank #4 (Sell).

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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