Video game retailer GameStop (GME Quick QuoteGME - Free Report) is set to report Q2 results Wednesday after the closing bell. GameStop, a Zacks Rank #4 (Sell), has missed the earnings mark in each of the last four quarters. With the recent meme stock resurgence, is GME a buy prior to the release?

Analysts are expecting the company to post a loss of -$0.38/share, reflecting negative growth of -100% versus the same quarter last year. Sales are projected to have risen 6% to $1.25 billion during the second quarter. Adding increased anxiety for investors to an already dismal outlook, GameStop has averaged a -251.5% average negative surprise over the past four quarters.

Shares of GME have fallen nearly 27% since the beginning of the year. The stock is still overvalued relative to its industry group despite the price decline. Investors would be wise to exercise caution ahead of the Q2 announcement.