GameStop (GME) closed at $22.46 in the latest trading session, marking a -0.4% move from the prior day. This change lagged the S&P 500’s daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.
Heading into today, shares of the video game retailer had gained 34.55% over the past month, outpacing the Retail-Wholesale sector’s gain of 6.29% and the S&P 500’s gain of 7.71% in that time.
Wall Street will be looking for positivity from GameStop as it approaches its next earnings report date. In that report, analysts expect GameStop to post earnings of -$0.17 per share. This would mark year-over-year growth of 67.31%. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, down 2.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.51 per share and revenue of $5.8 billion, which would represent changes of +50% and -2.19%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GameStop. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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 32% higher. GameStop is currently sporting a Zacks Rank of #2 (Buy).
The Retail – Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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