GameStop (GME) closed the latest trading day at $24.61, indicating a +0.78% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the video game retailer had lost 11.07% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.18% and the S&P 500's loss of 2.26% in that time.

Market participants will be closely following the financial results of GameStop in its upcoming release. In that report, analysts expect GameStop to post earnings of $0.09 per share. This would mark a year-over-year decline of 59.09%. Alongside, our most recent consensus estimate is anticipating revenue of $1.45 billion, indicating a 19.16% downward movement from the same quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GameStop. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. GameStop is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, GameStop currently has a Forward P/E ratio of 135.67. This denotes a premium relative to the industry's average Forward P/E of 17.95.

The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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GameStop Corp. (GME) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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