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GameStop (GME) Gains As Market Dips: What You Should Know

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In the latest trading session, GameStop (GME - Free Report) closed at $30.89, marking a +1.85% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.59%.

Shares of the video game retailer have appreciated by 33.73% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 9.85% and the S&P 500's gain of 3.76%.

Analysts and investors alike will be keeping a close eye on the performance of GameStop in its upcoming earnings disclosure. The company's earnings report is set to go public on December 10, 2024. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $900 million, down 16.54% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.01 per share and revenue of $4.03 billion, which would represent changes of -83.33% and -23.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. GameStop currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, GameStop is currently exchanging hands at a Forward P/E ratio of 3033. This represents a premium compared to its industry's average Forward P/E of 23.38.

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 38% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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