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

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GameStop (GME - Free Report) closed at $16.91 in the latest trading session, marking a +0.96% move from the prior day. This change lagged the S&P 500's 1.68% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the video game retailer had lost 14.93% in the past month. In that same time, the Retail-Wholesale sector lost 8.24%, while the S&P 500 lost 6.68%.

Investors will be hoping for strength from GameStop as it approaches its next earnings release, which is expected to be March 21, 2023. In that report, analysts expect GameStop to post earnings of -$0.16 per share. This would mark year-over-year growth of 65.96%. Our most recent consensus estimate is calling for quarterly revenue of $2.17 billion, down 3.82% from the year-ago period.

It is also important to note the recent changes to analyst estimates for GameStop. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GameStop is currently sporting 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 103, putting it in the top 41% 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.

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