GameStop (GME - Free Report) closed the most recent trading day at $8.48, moving -0.47% from the previous trading session. This change lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the video game retailer had lost 12.71% over the past month, lagging the Retail-Wholesale sector's loss of 0.07% and the S&P 500's loss of 0.19% in that time.
Wall Street will be looking for positivity from GME as it approaches its next earnings report date. The company is expected to report EPS of -$0.01, down from $0.38 in the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.67 billion, down 13.9% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for GME. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has remained stagnant within the past month. GME is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, GME is currently trading at a Forward P/E ratio of 5.50. This valuation marks a discount compared to its industry's average Forward P/E of 12.28.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GME in the coming trading sessions, be sure to utilize Zacks.com.
(NOTE: We are re-issuing this article to correct an inaccuracy. The original article, published Tuesday, April 30, 2019, should no longer be relied upon.)