Back to top

Image: Bigstock

GameStop (GME) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

GameStop (GME - Free Report) closed the most recent trading day at $151.77, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.17% gain on the day.

Prior to today's trading, shares of the video game retailer had lost 19.82% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.98% and the S&P 500's gain of 1.84% in that time.

Wall Street will be looking for positivity from GME as it approaches its next earnings report date. The company is expected to report EPS of -$0.42, up 70% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 18.69% from the year-ago period.

GME's full-year Zacks Consensus Estimates are calling for earnings of $0.02 per share and revenue of $5.67 billion. These results would represent year-over-year changes of +100.93% and +11.4%, respectively.

Any recent changes to analyst estimates for GME should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 101.63% higher within the past month. GME is currently a Zacks Rank #3 (Hold).

In terms of valuation, GME is currently trading at a Forward P/E ratio of 7672. For comparison, its industry has an average Forward P/E of 13.53, which means GME is trading at a premium to the group.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


GameStop Corp. (GME) - free report >>

Published in