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GameStop (GME) Outpaces Stock Market Gains: What You Should Know

GameStop (GME) closed the most recent trading day at $180.01, moving +1.82% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.99%.

Prior to today’s trading, shares of the video game retailer had gained 16.94% over the past month. This has outpaced the Retail-Wholesale sector’s loss of 3.17% and the S&P 500’s loss of 0.26% in that time.

Investors will be hoping for strength from GME as it approaches its next earnings release. The company is expected to report EPS of -$0.56, up 65.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.17 billion, up 14.63% from the year-ago period.

GME’s full-year Zacks Consensus Estimates are calling for earnings of -$0.63 per share and revenue of $5.63 billion. These results would represent year-over-year changes of +70.56% and +10.69%, respectively.

Investors might also notice recent changes to analyst estimates for GME. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 13.15% higher. GME is currently a Zacks Rank #3 (Hold).

The Retail – Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 124, putting it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.