GameStop (GME) closed at $ 129.31 in the most recent trading session, marking a -0.41% move from the previous day. This change was caught at 2.48% earned by the S&P 500 on the day. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq lost 0.09%.
To date, video game retailer shares have lost 22.18% in the past month, trailing Retail-Wholesale’s loss of 8.14% and the S&P 500’s loss of 7.81% during that period.
Investors will expect strength from GameStop as it approaches its next earnings release. The company is expected to report EPS of -$ 1.37, down 204.44% from last year’s quarter. Meanwhile, the Zacks Consensus Estimate for revenue forecasts net sales of $ 1.35 billion, up 5.95% from the previous year.
Looking at the full year, our Zacks Consensus Estimates suggests that analysts expect revenues of -$ 4.93 per share and revenue of $ 6.38 billion. These totals will mark changes of -8.11% and +6.22%, respectively, from last year.
It’s also important to note recent changes to analyst estimates for GameStop. Recent changes are likely to reflect the latest business trends near the season. As a result, we can interpret positive changes in the estimate as a good signal for the company’s business outlook.
Our research shows that these changes in estimation are directly related to nearby stock prices. We built Zacks Rank to take advantage of this phenomenon. Our system takes these changes in estimation and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive out-audited track record of outperformance, with #1 stocks generating average annual earnings that +25% since 1988. Over last month, the Zacks Consensus EPS estimate remained stagnant. GameStop is currently Zacks Rank #5 (Strong Sell).
The Retail – Consumer Electronics industry is part of the Retail -Wholesale sector. This group has a Zacks Industry Rank of 241, which places it in the lowest 5% of all 250+ industries.
The Zacks Industry Rank is listed in order from best to worst in terms of the average Zacks Rank of individual companies within each of these sectors. Our research shows that the top 50% rated industries perform more in the lower half by a factor of 2 to 1.
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GameStop Corp. (GME): Free Stock Analysis Report
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