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GameStop (GME) Outpaces Stock Market Gains: What You Should Know

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GameStop (GME - Free Report) closed at $8.69 in the latest trading session, marking a +1.88% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 1.13%.

Coming into today, shares of the video game retailer had lost 6.06% in the past month. In that same time, the Retail-Wholesale sector lost 2.95%, while the S&P 500 lost 2.34%.

Investors will be hoping for strength from GME as it approaches its next earnings release. In that report, analysts expect GME to post earnings of -$0.01 per share. This would mark a year-over-year decline of 102.63%. Our most recent consensus estimate is calling for quarterly revenue 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 should also note any recent changes to analyst estimates for GME. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GME is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, GME currently has a Forward P/E ratio of 5.5. This valuation marks a discount compared to its industry's average Forward P/E of 11.94.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% 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.

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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