GameStop (GME) closed the latest trading day at $25.90, indicating a +0.04% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.35%.

The the stock of video game retailer has fallen by 21.12% in the past month, lagging the Consumer Discretionary sector's gain of 2.95% and the S&P 500's gain of 1.02%.

The investment community will be closely monitoring the performance of GameStop in its forthcoming earnings report. The company is expected to report EPS of $0.09, down 59.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, down 19.16% from the year-ago period.

It is also important to note the recent changes to analyst estimates for GameStop. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GameStop is holding a Zacks Rank of #1 (Strong Buy) right now.

From a valuation perspective, GameStop is currently exchanging hands at a Forward P/E ratio of 143.83. For comparison, its industry has an average Forward P/E of 17.55, which means GameStop is trading at a premium to the group.

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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