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GameStop (GME) Gains But Lags Market: What You Should Know
GameStop (GME - Free Report) closed the most recent trading day at $40.53, moving +0.4% from the previous trading session. This change lagged the S&P 500's 2.13% gain on the day. At the same time, the Dow added 1.63%, and the tech-heavy Nasdaq gained 0.3%.
Heading into today, shares of the video game retailer had gained 17.76% over the past month, outpacing the Retail-Wholesale sector's gain of 7.16% and the S&P 500's gain of 5.84% in that time.
GameStop will be looking to display strength as it nears its next earnings release. On that day, GameStop is projected to report earnings of -$0.38 per share, which would represent a year-over-year decline of 100%. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 6.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.50 per share and revenue of $6.41 billion. These totals would mark changes of -31.58% and +6.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GameStop. Recent revisions tend to reflect the latest near-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. 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 has moved 0.08% lower. GameStop is currently sporting a Zacks Rank of #4 (Sell).
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 6% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.