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

GameStop (GME) closed at $159.48 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's 0.07% gain on the day.

GME will be looking to display strength as it nears its next earnings release. In that report, analysts expect GME to post earnings of -$0.56 per share. This would mark year-over-year growth of 65.22%. Meanwhile, our latest consensus estimate is calling for revenue of $1.17 billion, up 14.63% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.63 per share and revenue of $5.63 billion, which would represent changes of +70.56% and +10.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for GME. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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 has moved 15.47% higher. GME is currently sporting a Zacks Rank of #3 (Hold).

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.

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