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

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GameStop (GME - Free Report) closed the most recent trading day at $23.05, moving +0.79% from the previous trading session. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 4.73%.

Coming into today, shares of the video game retailer had gained 7.32% in the past month. In that same time, the Retail-Wholesale sector gained 2.76%, while the S&P 500 gained 0.3%.

Investors will be hoping for strength from GameStop as it approaches its next earnings release. On that day, GameStop is projected to report earnings of -$0.17 per share, which would represent year-over-year growth of 67.31%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, down 2.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.51 per share and revenue of $5.8 billion, which would represent changes of +50% and -2.19%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. GameStop currently has a Zacks Rank of #3 (Hold).

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% 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

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