GameStop (GME) Stock Drops Despite Market Gains: Important Facts to Note

In the latest market close, GameStop (GME) reached $26.44, with a -0.56% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.6%.Heading into today, shares of the video game retailer had gained 25.31% over the past month, outpacing the Consumer Discretionary sector's gain of 6.33% and the S&P 500's gain of 1.06% in that time.The investment community will be paying close attention to the earnings performance of GameStop in its upcoming release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $900 million, down 16.54% from the year-ago period.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.01 per share and revenue of $4.03 billion. These totals would mark changes of -83.33% and -23.57%, respectively, from last year.It's also important for investors to be aware of any recent modifications to analyst estimates for GameStop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, GameStop possesses a Zacks Rank of #3 (Hold).With respect to valuation, GameStop is currently being traded at a Forward P/E ratio of 2659. This expresses a premium compared to the average Forward P/E of 25.4 of its industry.The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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 GameStop Corp. (GME): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks