GameStop (GME) stock falls -1.2%: What you should know

GameStop (GME) closed at $23.14 in the latest trading session, down -1.2% from the previous day. The stock's performance outperformed the S&P 500's daily loss of 2.12%. The Dow lost 1.51%, while the tech-heavy Nasdaq lost 3.26%.

The video game retailer's shares have gained 13.41% over the past month, outperforming the Consumer Discretionary sector's 7.22% gain and the S&P 500's 5.78% gain.

Market participants will be closely following GameStop's financial results in the upcoming release. The company plans to announce its earnings on September 10, 2024. The company's upcoming earnings per share is estimated at -$0.01, representing an increase of 66.67% from the year-ago quarter. Meanwhile, our latest consensus estimate is calling for revenue of $900 million, representing a decrease of 22.67% from the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.08 per share and revenue of $4.13 billion, representing changes of +33.33% and -21.64%, respectively, from the prior year.

In addition, it would be beneficial for investors to monitor the recent changes in analyst forecasts for GameStop. These recent adjustments often reflect changing dynamics in short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business prospects.

Our research suggests that these estimate changes are directly related to future stock price performance. To capitalize on this, we have developed the Zacks Rank, a proprietary model that 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 admirable track record of outperformance that is independently audited. #1-ranked stocks have delivered an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has not changed. GameStop currently has a Zacks Rank of #3 (Hold).

In terms of valuation, GameStop is currently trading at a P/E ratio of 292.75, which represents a premium to the industry average P/E ratio of 19.62.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% 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% of industries outperform the bottom half by a factor of 2 to 1.

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Be sure to use Zacks.com to track all of these and other stock-moving metrics in the coming trading sessions.

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