In the latest trading session, GameStop (GME) closed at $24.30, marking a -0.41% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 1.55%, and the technology-centric Nasdaq decreased by 0.35%.

The video game retailer's shares have seen a decrease of 5.76% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.86% and the S&P 500's loss of 2.31%.

Analysts and investors alike will be keeping a close eye on the performance of GameStop in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.09, marking a 59.09% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.45 billion, down 19.16% from the year-ago period.

Any recent changes to analyst estimates for GameStop should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. As of now, GameStop holds a Zacks Rank of #3 (Hold).

Investors should also note GameStop's current valuation metrics, including its Forward P/E ratio of 135.56. This signifies a premium in comparison to the average Forward P/E of 19.13 for its industry.

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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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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