What's Happening with gme
GameStop Corp. (GME) will report its fourth-quarter earnings April 2. Look for the report after the market close with the consensus calling for earnings of $1.59 on sales of $3.29 billion. During the same period last year the company earned $2.02 on revenue of $3.5 billion and the stock is down 18.9% on the year.
Technical Analysis
GME was recently trading at $10.24 down $7.03 from its 12-month high and $0.17 above its 12-month low. InvestorsObserver's Stock Score Report gives GME a 18 long-term technical score and a 24 short-term technical score. The stock has recent support above $10 and recent resistance below $11.5. Of the 7 analysts who cover the stock 1 rate it Strong Buy, 0 rate it Buy, 4 rate it Hold, 1 rate it Sell, and 1 rate it Strong Sell, GME gets a score of 16 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
GME is currently trading just above its 52-week low. There is a lot of bearish sentiment in the stock despite the company posting better than expected numbers on both the top and bottom line last quarter. This quarter analysts forecast earnings of $1.59, well below the $2.02 it earned during the same period last year. The earnings drop has already been priced into the stock, so shares should not take a big hit on the lower profit as long as actual earnings fall in-line or better than expected. The big problem is that earnings are expected to continue to fall moving forward, with analysts forecast profits to fall at an annual average rate of 37% over the next five years. The company will desperately need to post a string of positive earnings surprises to bring enthusiasm back into the stock. GME is priced very low with a forward P/E of 5, which should limit additional downside, but it is going to be hard for the stock to stage a strong upward run unless the market sees significant improvements in the company's bottom line. Analysts have an average price target of $11.33 on the stock.