GameStop GME is the world's largest video game retailer. The company offers the best selection of new and pre-owned video gaming consoles, accessories, and video game titles in both physical and digital formats.

GameStop currently sports a bullish Zacks Rank #1 (Strong Buy), with its earnings outlook shifting notably bright over recent months.

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Let’s take a closer look at the company.

GameStop CEO Dives In

Most investors are familiar with GameStop thanks to the ‘meme stock’ mania a few years back, with the company reflecting the poster child of the bunch overall. Though shares are down nearly 20% year-to-date, CEO Ryan Cohen recently stepped in and purchased 500k shares at a total transaction value of roughly $10.7 million, perhaps a nice indication of his views on the long-term outlook.

Though sales growth has been sluggish, the company’s margins picture continues to improve nicely over recent periods, as shown below.

Image Source: Zacks Investment Research

It’s worth mentioning that the stock isn’t going to squeeze again like it did a few years ago, with the current short interest percentage well below the extremes we saw. Nonethless, the bullish EPS outlook for the stock paints a positive near-term picture, with its next set of quarterly results expected near the beginning of June.

Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

GameStop GME is currently a Zack Rank #1 (Strong Buy).

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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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