GameStop (GME - Free Report) closed the most recent trading day at $8.85, moving -1.34% from the previous trading session. This change lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.
Coming into today, shares of the video game retailer had lost 10.57% in the past month. In that same time, the Retail-Wholesale sector gained 4.73%, while the S&P 500 gained 2.62%.
GME will be looking to display strength as it nears its next earnings release. On that day, GME is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 102.63%. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, down 13.9% from the prior-year quarter.
GME's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $7.74 billion. These results would represent year-over-year changes of -27.57% and -11.36%, respectively.
Any recent changes to analyst estimates for GME should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.43% lower. GME is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that GME has a Forward P/E ratio of 5.79 right now. This represents a discount compared to its industry's average Forward P/E of 13.25.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.