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.
Image Source: Zacks Investment Research
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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
