In the latest market close, GameStop (GME) reached $23.50, with a +1.95% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.64%. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 0.31%.
Shares of the video game retailer witnessed a loss of 14.63% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 11.87% and the S&P 500's loss of 7.69%.
The investment community will be paying close attention to the earnings performance of GameStop in its upcoming release. The company is slated to reveal its earnings on March 25, 2025. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 59.09% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.45 billion, reflecting a 19.16% fall from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GameStop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. GameStop presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, GameStop is holding a Forward P/E ratio of 128.06. This represents a premium compared to its industry's average Forward P/E of 21.22.
The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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