GameStop Looks Like a Winner

Expect good results and bullish guidance when video game retailer GameStop (GME - Cramer's Take - Stockpickr) releases its third-quarter 2007 earnings Tuesday, says Michael Comeau, author of TheStreet.com's Breakout Stocks newsletter and a member of Jim Cramer's research team.

"I definitely think GameStop is going to beat and guide up," Comeau says in an interview on TheStreet.com TV . "Monthly data has been very strong from NPD. Also, the holiday lineup is very, very, very strong -- especially compared to last year, so I think good things will continue going on there." (NPD is a market research firm that tracks retail sales data for a variety of industries, including video games.)

Among its strengths, GameStop has new titles that should carry it into the holidays. The most noteworthy include Activision's (ATVI - Cramer's Take - Stockpickr) newly released "Call of Duty 4" -- which Comeau says has been experiencing huge demand and selling out in a lot of locations. "Its online activity is through the roof," he says. "Second only to [Microsoft's (MSFT - Cramer's Take - Stockpickr)] "Halo 3", and I think that's going to continue for a while."

Other games boding well for GameStop include Activision's "Guitar Hero III", Nintendo's "Super Mario Galaxy", Electronic Arts' (ERTS - Cramer's Take - Stockpickr) "Rock Band" and "Assassin's Creed". "The list goes on and on," Comeau says. "The biggest problem GameStop will have this holiday season is literally fitting everything in the store."