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GameStop Corp. (NYSE: GME) has recently gained attention among investors. Over the past month, its stock declined by 13.2%, while the broader S&P 500 index dropped 6.2%. The gaming industry, where GameStop operates, fell 10.2% in the same period. Despite this decline analysts are closely monitoring the stock's next moves.
Analysts track earnings estimates to predict stock performance. GameStop is expected to post earnings of $0.08 per share for the current quarter. This will mark a 166.7% increase year-over-year. Over the last 30 days, the consensus earnings estimate has also jumped by 166.7%.
For the full fiscal year, GameStop’s earnings are projected to reach $0.47 per share, reflecting a 42.4% growth from last year. The estimate for next fiscal year remains unchanged at $0.47 per share, but it has surged by 261.5% over the past month. Based on these upward revisions, GameStop holds a Zacks Rank #1 (Strong Buy).
GameStop’s ability to generate revenue is a key factor in its long-term growth. The company’s revenue for the current quarter is expected to reach $750 million, marking a 15% decline from the previous year. Full-year revenue projections stand at $3.4 billion, an 11.1% drop, while the following fiscal year’s estimate of $2.95 billion represents a 13.2% decrease.
In its last reported quarter, GameStop generated $1.28 billion in revenue, down 28.5% year-over-year. However, its earnings per share (EPS) rose to $0.30, compared to $0.22 a year ago. Despite this, GameStop missed revenue estimates in the last four quarters, raising concerns about its ability to sustain growth.
Financial evaluation functions as a principal factor for money allocation decisions. GameStop maintains an 'F' value in the Zacks Value Style Score which demonstrates that its stock price surpasses other industry companies. The market valuation of the stock indicates prices have moved above the proper value.
Earnings growth alongside strong Zacks ranking indicates that GameStop stock could grow further in the coming months. Long-term financial sustainability faces challenges because the company shows decreasing cash flow combined with price valuation concerns. Stock market watchers examine both upcoming financial disclosures together with general industry directions to predict GameStop Corporation's stock performance.
