GameStop (GME) closed the most recent trading day at $154.69, moving -1.12% from the previous trading session. This change lagged the S&P 500’s 0.36% gain on the day.
Prior to today’s trading, shares of the video game retailer had lost 20.63% over the past month. This has lagged the Retail-Wholesale sector’s gain of 0.74% and the S&P 500’s gain of 5.21% in that time.
Investors will be hoping for strength from GME as it approaches its next earnings release. In that report, analysts expect GME to post earnings of -$0.56 per share. This would mark year-over-year growth of 65.22%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 17.64% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.73 per share and revenue of $5.66 billion, which would represent changes of +65.89% and +11.29%, respectively, from the prior year.
Any recent changes to analyst estimates for GME should also be noted by investors. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1116.67% lower within the past month. GME is currently sporting 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 111, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
