GameStop Crafts 52-Week High - Analyst Blog

By
A A A

The momentum gathered from the better-than-expected fourth-quarter fiscal 2012 results on the back of strength witnessed across digital and mobile businesses and gross margin improvement facilitated the shares of GameStop Corporation ( GME ) to attain a new 52-week high of $28.67 on Mar 28, 2013.

Shares of this Zacks Rank #3 (Hold) video game and entertainment software retailer eventually closed at $27.97, up 5.8% from the previous day's session and generated a year-to-date return of roughly 10.2%. The company currently trades at a forward P/E of 8.95x, a 27.8% discount to the peer group average of 12.39x.

GameStop, which competes with Amazon.com Inc . ( AMZN ), has been evolving continuously and transformed as a mixed retailer of physical and digital gaming and electronics products. The company's ventures in digital, iDevice and gaming tablet businesses are expected to be accretive to its results.

GameStop declared impressive results on Mar 28, 2013, wherein earnings of $2.16 per share beat the Zacks Consensus Estimate of $2.09, and rose 24.9% from $1.73 earned in the prior-year quarter. In the last 4 quarters, the company has outpaced the Zacks Consensus Estimate by an average of 12.1%.

The Grapevine, Texas-based GameStop's total net sales of $3,561.5 million fell marginally by 0.5% from the year-ago quarter but came ahead of the Zacks Consensus Estimate of $3,493 million. Digital receipts increased 60.3% year over year, whereas Mobile sales came in at $100 million.

Recently, on Feb 19, 2013, GameStop raised its quarterly dividend by 10% to 27.5 cents (or $1.10 annually) from 25 cents a share (or $1.00 annually). The increased dividend was paid on Mar 19, 2013, to stockholders of record as of Mar 5, 2013.

Alongside, companies like Time Warner Inc. ( TWX ) and Lions Gate Entertainment Corp. ( LGF ) achieved new 52-week highs on Mar 28 of $58.02 and $24.15, respectively.



AMAZON.COM INC (AMZN): Free Stock Analysis Report

GAMESTOP CORP (GME): Free Stock Analysis Report

LIONS GATE ETMT (LGF): Free Stock Analysis Report

TIME WARNER INC (TWX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AMZN , GME , LGF , TWX

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Quick on Your Feet
Quick on Your Feet                  
Early Entrepreneurship
Early Entrepreneurship              

Stocks

Referenced

Most Active by Volume

48,099,947
  • $16.09 ▲ 0.50%
40,277,806
  • $102.50 ▲ 0.24%
40,236,499
  • $19.57 ▲ 2.35%
31,092,510
  • $49.75 ▲ 0.65%
30,795,218
  • $34.92 ▲ 0.78%
29,910,855
  • $3.63 ▲ 0.83%
24,019,154
  • $13.06 ▼ 0.38%
23,753,906
  • $74.82 ▲ 1.31%
As of 8/29/2014, 04:04 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com