) surged to attain a new 52-week high of $43.01 on Jul 5, 2013,
before closing at $42.99. Shares of this Zacks Rank #3 (Hold)
stock have amassed a year-to-date return of roughly 70.8%.
Based on the current price, this video game and entertainment
software retailer is 3.3% above the Zacks Consensus average
analyst price target of $41.61. The company currently trades at a
forward P/E of 13.81x, in line with the peer group average.
Additionally, the company's long-term estimated EPS growth rate
GameStop is well positioned to take the advantage of the
growing market for video game products and PC entertainment
software. The company's strategy is to branch out through store
expansions in favorable localities by providing the largest title
collection of video games and leveraging its first-to-market
distribution network to offer the latest hardware and software
GameStop has been evolving continuously and transformed as a
mixed retailer of physical and digital gaming and electronic
products. The company's ventures in digital, iDevice and gaming
tablet businesses are expected to be accretive to its
Moreover, shares of GameStop have reacted positively to the
announcement made by
) that Xbox One is enabled to play used games and is not going to
levy platform fee, thus enabling the smooth transfer of used and
pre-owned games. GameStop's buy-sell-trade model of selling new
games and buying back used games and PowerUp Rewards program make
it a popular destination for gamers.
GameStop is not the only company that is anticipated to
benefit from this, as the move is likely to auger well for game
Electronic Arts Inc.
) as well.
Alongside, shares of
) reached a new 52-week high of $43.39 on Jul 5, and eventually
closed trade at $43.30.
ELECTR ARTS INC (EA): Free Stock Analysis
GAMESTOP CORP (GME): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
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