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

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GameStop (GME - Free Report) closed at $4.43 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's 1.67% gain on the day. At the same time, the Dow added 1.53%, and the tech-heavy Nasdaq gained 2.08%.

Investors will be hoping for strength from GME as it approaches its next earnings release. The company is expected to report EPS of -$0.73, down 1142.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 32.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.67 per share and revenue of $5.81 billion. These totals would mark changes of -404.55% and -10.1%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GME. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 15.17% lower. GME currently has a Zacks Rank of #3 (Hold).

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% 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.

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