Trade-Ideas LLC identified

GameStop

(

GME

) as a post-market leader 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 $79.0 million.
  • GME is up 4.1% today from today's close.

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More details on GME:

GameStop Corp. operates as a multichannel video game retailer. The stock currently has a dividend yield of 4.7%. GME has a PE ratio of 9. Currently there are 5 analysts that rate GameStop a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for GameStop has been 2.5 million shares per day over the past 30 days. GameStop has a market cap of $3.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.33 and a short float of 44.1% with 15.60 days to cover. Shares are up 8.3% 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

hold

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the ratings report include:

  • GAMESTOP CORP has improved earnings per share by 6.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, GAMESTOP CORP increased its bottom line by earning $3.54 versus $3.02 in the prior year. This year, the market expects an improvement in earnings ($3.76 versus $3.54).
  • 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 0.18 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income has decreased by 0.9% when compared to the same quarter one year ago, dropping from $56.40 million to $55.90 million.
  • Net operating cash flow has decreased to $211.10 million or 32.31% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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