What investors need to know

GameStop (GME) closed the most recent trading day at $22.33, representing a change of -0.36% from the end of the previous session. The change lagged the S&P 500’s daily loss of 0.28%. Meanwhile, the Dow lost 0.61% and the Nasdaq, a tech-heavy index, lost 0.33%.

Heading into today, shares of the video game retailer had gained 4.72% over the past month, outpacing the Consumer Discretionary sector’s gain of 2.26% and the S&P 500’s gain of 0.41% in that time.

Market participants will be paying close attention to GameStop’s financial results in the upcoming release. At the same time, our most recent consensus estimate is calling for revenue of $900 million, down 16.54% from the corresponding quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.01 per share and revenue of $4.03 billion, representing changes of -83.33% and -23.57%, respectively, from the year-to-date corresponds to the previous year.

Additionally, it would be beneficial for investors to keep an eye on any recent changes to analyst forecasts for GameStop. These revisions help demonstrate the ever-changing nature of near-term business trends. As a result, optimistic estimate changes suggest analysts have a positive outlook on the company’s business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we have developed the Zacks Rank, a unique model which takes these estimate changes into account and provides a practical 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 generating an average annual return of +25% since 1988 For the 30-day period, the Zacks Consensus EPS estimate remained unchanged. GameStop currently holds a Zacks Rank of #3 (Hold).

Looking at valuation, GameStop has a forward P/E ratio of 2241. This represents a premium compared to its industry’s average Forward P/E ratio of 21.5.

The gaming industry is part of the consumer discretionary sector. Currently, this industry has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top rated 50% of industries outperform the bottom half by a factor of 2 to 1.

Remember to use Zacks.com to track these and other stock-moving metrics during the coming trading sessions.

The story continues