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GameStop (GME) Stock Moves -3.86%: What You Should Know

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In the latest trading session, GameStop (GME - Free Report) closed at $24.17, marking a -3.86% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 4.36%. Meanwhile, the Dow experienced a drop of 3.44%, and the technology-dominated Nasdaq saw a decrease of 5.52%.

Coming into today, shares of the video game retailer had gained 2.28% in the past month. In that same time, the Consumer Discretionary sector gained 11.21%, while the S&P 500 lost 0.38%.

Market participants will be closely following the financial results of GameStop in its upcoming release. The company is forecasted to report an EPS of $0.2, showcasing a 16.67% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $722.5 million, indicating a 12% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.09 per share and a revenue of $3.36 billion, representing changes of -7.63% and -11.67%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GameStop. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. At present, GameStop boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, GameStop is currently exchanging hands at a Forward P/E ratio of 23.06. This denotes a premium relative to the industry average Forward P/E of 15.4.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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