We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GameStop Offloads Spring Mobile Unit, Streamlines Operations
Read MoreHide Full Article
GameStop Corp. (GME - Free Report) is on track to streamline its operating structure and recently concluded the sale of Spring Mobile business to this end. The mobile division, which owns and operates 1,284 AT&T wireless stores, was acquired by Prime Communications. The $700 million sale price excludes transaction charges, debt and working capital adjustments.
Management hinted that the net proceeds from the sale might be used to lower debt burden, reinvest in core video games and collectibles businesses, and conduct share repurchases. The Spring Mobile business, which formed part of the company’s Technology Brands segment, has been struggling for quite some time now. Last year, the company sold its Cricket Wireless business.
Notably, the decision to divest the Spring Mobile business is part of the company’s comprehensive review process as it continues to look for strategic alternatives to boost shareholder value. Management is satisfied to successfully finish the deal and will now focus on its core businesses of video games and fast rising collectibles business.
Meanwhile, GameStop’s collectibles sales category has been profitable for the past few quarters. In the fiscal third quarter, sales of collectibles rose 11.7%, following an increase of 15.7% and 24.4% in the second and first quarter of fiscal 2018. The company has been steadily gaining from robust footing in the collectible’s category backed by continuous growth in domestic and international collectibles businesses. Moreover, GameStop seeks to strengthen this unit by widening its global footprint in video game stores, ThinkGeek and Zing stores, as well as e-commerce platforms.
In the past month, shares of this Grapevine, TX-based company have gained approximately 23%, outperforming the industry’s growth of 7.4%.
GameStop, which operates more than 5,800 stores across 14 countries, carries a Zacks Rank #3 (Hold).
Urban Outfitters, Inc. (URBN - Free Report) delivered average positive earnings surprise of 14.5% in the trailing four quarters. It has a long-term earnings growth rate of 11.2% and a Zacks Rank #2.
Tractor Supply Company (TSCO - Free Report) has long-term earnings growth rate of 12.2% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
GameStop Offloads Spring Mobile Unit, Streamlines Operations
GameStop Corp. (GME - Free Report) is on track to streamline its operating structure and recently concluded the sale of Spring Mobile business to this end. The mobile division, which owns and operates 1,284 AT&T wireless stores, was acquired by Prime Communications. The $700 million sale price excludes transaction charges, debt and working capital adjustments.
.jpg)
Management hinted that the net proceeds from the sale might be used to lower debt burden, reinvest in core video games and collectibles businesses, and conduct share repurchases. The Spring Mobile business, which formed part of the company’s Technology Brands segment, has been struggling for quite some time now. Last year, the company sold its Cricket Wireless business.
Notably, the decision to divest the Spring Mobile business is part of the company’s comprehensive review process as it continues to look for strategic alternatives to boost shareholder value. Management is satisfied to successfully finish the deal and will now focus on its core businesses of video games and fast rising collectibles business.
Meanwhile, GameStop’s collectibles sales category has been profitable for the past few quarters. In the fiscal third quarter, sales of collectibles rose 11.7%, following an increase of 15.7% and 24.4% in the second and first quarter of fiscal 2018. The company has been steadily gaining from robust footing in the collectible’s category backed by continuous growth in domestic and international collectibles businesses. Moreover, GameStop seeks to strengthen this unit by widening its global footprint in video game stores, ThinkGeek and Zing stores, as well as e-commerce platforms.
In the past month, shares of this Grapevine, TX-based company have gained approximately 23%, outperforming the industry’s growth of 7.4%.
GameStop, which operates more than 5,800 stores across 14 countries, carries a Zacks Rank #3 (Hold).
3 Stocks to Watch
Office Depot, Inc. (ODP - Free Report) delivered average positive earnings surprise of 11.9% in the trailing four quarters. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Urban Outfitters, Inc. (URBN - Free Report) delivered average positive earnings surprise of 14.5% in the trailing four quarters. It has a long-term earnings growth rate of 11.2% and a Zacks Rank #2.
Tractor Supply Company (TSCO - Free Report) has long-term earnings growth rate of 12.2% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>