The latest trading session saw GameStop (GME) ending at $22.61, denoting a +0.85% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the video game retailer had lost 17.33% in the past month. In that same time, the Consumer Discretionary sector lost 8.04%, while the S&P 500 lost 7.29%.
Investors will be eagerly watching for the performance of GameStop in its upcoming earnings disclosure. The company is expected to report EPS of $0.09, down 59.09% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.45 billion, showing a 19.16% drop compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for GameStop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, GameStop holds a Zacks Rank of #3 (Hold).
Investors should also note GameStop's current valuation metrics, including its Forward P/E ratio of 124.56. This signifies a premium in comparison to the average Forward P/E of 20.85 for its industry.
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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GameStop Corp. (GME) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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