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GameStop (GME) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw GameStop (GME - Free Report) ending at $22.68, denoting a -0.22% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.78%.

The video game retailer's stock has dropped by 0.87% in the past month, falling short of the Consumer Discretionary sector's gain of 0.21% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of GameStop in its upcoming earnings disclosure. Meanwhile, our latest consensus estimate is calling for revenue of $900 million, down 16.54% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.01 per share and revenue of $4.03 billion. These totals would mark changes of -83.33% and -23.57%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for GameStop. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GameStop is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GameStop has a Forward P/E ratio of 2273 right now. This signifies a premium in comparison to the average Forward P/E of 21.78 for its industry.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.


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