), an S&P 500 company, to beat expectations when it reports
fourth-quarter fiscal 2012 results on Mar 28, 2013.
Why a Likely Positive Surprise?
Our proven model shows that GameStop is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
GameStop currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +0.95%. This is because the Most Accurate Estimate stands at
$2.12, while the Zacks Consensus Estimate is pegged at $2.10.
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of GameStop's Zacks Rank #3 (Hold) and +0.95%
ESP make us very confident regarding a positive earnings beat on
What is Driving the Better than Expected Earnings?
GameStop is well positioned to take the advantage of growing
market for video game products and PC entertainment software.
GameStop continued to branch out and transformed as a mixed
retailer of physical and digital gaming and electronics products.
The company's venture in digital, iDevice and gaming tablet
businesses would be accretive to its results. The company's
buy-sell-trade model of selling new games and buying back used
games and PowerUp Rewards program makes it a popular destination
The positive trend is seen in the trailing four-quarter
average surprise of 11.2%.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
), Earnings ESP of +5.46% and Zacks Rank #1 (Strong Buy).
Flowers Foods, Inc.
), Earnings ESP of +5.13% and Zacks Rank #1 (Strong Buy).
Kraft Foods Group, Inc.
), Earnings ESP of +4.69% and Zacks Rank #2 (Buy).
CABELAS INC (CAB): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis
GAMESTOP CORP (GME): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
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