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GameStop (GME) Stock Drops Despite Market Gains: Important Facts to Note
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GameStop (GME - Free Report) closed the most recent trading day at $23.90, moving -3.71% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.7%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.
Coming into today, shares of the video game retailer had gained 6.11% in the past month. In that same time, the Consumer Discretionary sector gained 4.8%, while the S&P 500 lost 1.21%.
The investment community will be paying close attention to the earnings performance of GameStop in its upcoming release. The company's upcoming EPS is projected at $0.2, signifying a 16.67% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $722.5 million, reflecting a 12% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.09 per share and revenue of $3.36 billion. These totals would mark changes of -7.63% and -7.33%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GameStop. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. GameStop currently has a Zacks Rank of #3 (Hold).
In terms of valuation, GameStop is presently being traded at a Forward P/E ratio of 22.77. This represents a premium compared to its industry average Forward P/E of 15.85.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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GameStop (GME) Stock Drops Despite Market Gains: Important Facts to Note
GameStop (GME - Free Report) closed the most recent trading day at $23.90, moving -3.71% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.7%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.
Coming into today, shares of the video game retailer had gained 6.11% in the past month. In that same time, the Consumer Discretionary sector gained 4.8%, while the S&P 500 lost 1.21%.
The investment community will be paying close attention to the earnings performance of GameStop in its upcoming release. The company's upcoming EPS is projected at $0.2, signifying a 16.67% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $722.5 million, reflecting a 12% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.09 per share and revenue of $3.36 billion. These totals would mark changes of -7.63% and -7.33%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GameStop. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. GameStop currently has a Zacks Rank of #3 (Hold).
In terms of valuation, GameStop is presently being traded at a Forward P/E ratio of 22.77. This represents a premium compared to its industry average Forward P/E of 15.85.
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.