Gamestop – GameStop (GME) Gains But Lags Market: What You Should Know – September 2, 2021
In the latest trading session, GameStop (GME – Free Report) closed at $213.52, marking a +0.26% move from the previous day. This change lagged the S&P 500’s 0.28% gain on the day.
Heading into today, shares of the video game retailer had gained 45.08% over the past month, outpacing the Retail-Wholesale sector’s gain of 1.55% and the S&P 500’s gain of 3.07% in that time.
Wall Street will be looking for positivity from GME as it approaches its next earnings report date. This is expected to be September 8, 2021. The company is expected to report EPS of -$0.42, up 70% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 19.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $5.68 billion, which would represent changes of +100.93% and +11.5%, respectively, from the prior year.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. GME is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, GME is holding a Forward P/E ratio of 10648.5. For comparison, its industry has an average Forward P/E of 11.94, which means GME is trading at a premium to the group.
The Retail – Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.