GameStop (GME) Gains But Lags Market: What You Should Know – July 23, 2021
GameStop (GME – Free Report) closed at $180.36 in the latest trading session, marking a +0.84% move from the prior day. This move lagged the S&P 500’s daily gain of 1.02%.
Prior to today’s trading, shares of the video game retailer had lost 15.76% over the past month. This has lagged the Retail-Wholesale sector’s gain of 0.19% and the S&P 500’s gain of 3.01% 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 -$0.42, up 70% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, up 18.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.65 per share and revenue of $5.67 billion, which would represent changes of +69.63% and +11.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GME. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 44.09% higher 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 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.