In the latest trading session, GameStop (GME) closed at $23.27, marking a +0.47% move from the previous day. This move outpaced the S&P 500's daily loss of 0.73%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 7.92%.
Prior to today's trading, shares of the video game retailer had gained 21.9% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.23% and the S&P 500's gain of 0.5% in that time.
GameStop will be looking to display strength as it nears its next earnings release. On that day, GameStop is projected to report earnings of -$0.17 per share, which would represent year-over-year growth of 67.31%. Meanwhile, our latest consensus estimate is calling for revenue of $1.34 billion, down 2.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.51 per share and revenue of $5.8 billion, which would represent changes of +50% and -2.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GameStop. These revisions help to show the ever-changing nature of near-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. The Zacks Consensus EPS estimate remained stagnant within the past month. GameStop currently has a Zacks Rank of #2 (Buy).
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 8% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report