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 $94.7 million.
  • GME is up 3% today from today's close.

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More details on GME:

GameStop Corp. operates as an omnichannel video game retailer. The stock currently has a dividend yield of 5.2%. GME has a PE ratio of 8. Currently there are 6 analysts that rate GameStop a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for GameStop has been 3.0 million shares per day over the past 30 days. GameStop has a market cap of $3.0 billion and is part of the services sector and retail industry. The stock has a beta of 1.13 and a short float of 44.3% with 11.81 days to cover. Shares are up 6% 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, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • GAMESTOP CORP has improved earnings per share by 5.8% 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 two years. 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 $3.81 versus $3.54 in the prior year. This year, the market expects an improvement in earnings ($4.01 versus $3.81).
  • GME's revenue growth trails the industry average of 13.2%. Since the same quarter one year prior, revenues slightly increased by 1.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has slightly increased to $468.70 million or 5.58% when compared to the same quarter last year. Despite an increase in cash flow, GAMESTOP CORP's cash flow growth rate is still lower than the industry average growth rate of 18.34%.
  • The gross profit margin for GAMESTOP CORP is currently lower than what is desirable, coming in at 29.59%. Regardless of GME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.02% trails the industry average.
  • GME's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.18%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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