Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

GameStop

(

GME

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified GameStop as such a stock due to the following factors:

  • GME has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.6 million.
  • GME is down 2.1% today from today's close.

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More details on GME:

GameStop Corp. operates as a multichannel video game, consumer electronics, and wireless services retailer. The stock currently has a dividend yield of 3.5%. GME has a PE ratio of 12.9. Currently there are 10 analysts that rate GameStop a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for GameStop has been 2.2 million shares per day over the past 30 days. GameStop has a market cap of $4.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.91 and a short float of 47.6% with 30.14 days to cover. Shares are up 17.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GameStop as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GAMESTOP CORP's earnings per share declined by 13.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GAMESTOP CORP turned its bottom line around by earning $3.02 versus -$2.23 in the prior year. This year, the market expects an improvement in earnings ($3.48 versus $3.02).
  • GME's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.26 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, GAMESTOP CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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