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GameStop (GME) Gains But Lags Market: What You Should Know

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GameStop (GME - Free Report) closed at $96.13 in the latest trading session, marking a +0.49% move from the prior day. The stock lagged the S&P 500's daily gain of 1.86%. Elsewhere, the Dow gained 1.98%, while the tech-heavy Nasdaq added 0.15%.

Prior to today's trading, shares of the video game retailer had lost 30.79% over the past month. This has lagged the Retail-Wholesale sector's loss of 21.15% and the S&P 500's loss of 12.37% in that time.

Wall Street will be looking for positivity from GameStop as it approaches its next earnings report date. On that day, GameStop is projected to report earnings of -$1.37 per share, which would represent a year-over-year decline of 204.44%. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, up 5.95% from the prior-year quarter.

GME's full-year Zacks Consensus Estimates are calling for earnings of -$4.93 per share and revenue of $6.38 billion. These results would represent year-over-year changes of -8.11% and +6.22%, respectively.

Investors should also note any recent changes to analyst estimates for GameStop. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GameStop currently has a Zacks Rank of #3 (Hold).

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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