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GameStop (GME) Soars 13.3%: Is Further Upside Left in the Stock?

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GameStop (GME - Free Report) shares rallied 13.3% in the last trading session to close at $13.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7% loss over the past four weeks.

GameStop has been witnessing strength in its Hardware & Accessories and Software segments, driven by growth in sales of new gaming hardware and software products. The company has been increasing its product catalog across consumer electronics, PC gaming, collectibles, toys and other categories. It remains focused on strengthening its e-commerce capabilities and improving the speed of delivery and service to customers.

This video game retailer is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +61.3%. Revenues are expected to be $1.16 billion, down 2.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For GameStop, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GME going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

GameStop is part of the Zacks Retail - Consumer Electronics industry. Conn's (CONN - Free Report) , another stock in the same industry, closed the last trading session 1.5% higher at $3.33. CONN has returned 9.3% in the past month.

Conn's' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.48. Compared to the company's year-ago EPS, this represents a change of -89.7%. Conn's currently boasts a Zacks Rank of #3 (Hold).

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