In the latest trading session, GameStop (GME) closed at $27.44, up +0.62% from the previous day. The change outpaced the S&P 500’s daily gain of 0.05%. At the same time, the Dow lost 0.17% and the tech-heavy Nasdaq gained 0.4%.

Shares of the video game retailer have gained 22.12% over the past month, outpacing the Consumer Discretionary sector’s gain of 9.96% and the S&P 500’s gain of 5.75%.

GameStop’s upcoming earnings release will be of great interest to investors. The company’s earnings report is expected on December 10, 2024. Our most recent consensus estimate is calling for quarterly revenue of $900 million, down 16.54% from the year-ago period.

GME’s full-year Zacks Consensus Estimates are calling for earnings of $0.01 per share and revenue of $4.03 billion. These results would represent year-over-year changes of -83.33% and -23.57%, respectively.

Investors might also notice recent changes to analyst estimates for GameStop. Recent revisions typically reflect the latest short-term business trends. As a result, upward estimate revisions reflect analysts’ positive view on the company’s operations and ability to generate profits.

Our research suggests that these estimate changes are directly related to upcoming stock price performance. To capitalize on this, we have developed the Zacks Rank, a unique model which takes these estimate changes into account and provides a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, outside-audited track record of success, with #1 stocks generating an average annual return of + 25% achieved. There has been no change in the Zacks Consensus EPS estimate over the past month. Currently, GameStop has a Zacks Rank of #3 (Hold).

Investors should also note GameStop’s current valuation metrics, including its Forward P/E ratio of 2727. This suggests a premium in contrast to the industry’s Forward P/E ratio of 23.96.

The gaming industry is part of the consumer discretionary sector. This industry, which currently has a Zacks Industry Rank of 172, is ranked in the bottom 32% of all 250+ industries.

The Zacks Industry Rank is ranked from best to worst in terms of the average Zacks Rank of the individual companies in each of these sectors. Our research shows that the top rated 50% of industries outperform the bottom half by a factor of 2 to 1.

Don’t forget to use Zacks.com to keep an eye on all of these stock moving metrics and others in the coming trading sessions.

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