(VIANEWS) – GameStop stock tumbled 24.14% over five sessions, from EUR15.12 to EUR11.47 on Tuesday at 14:03 EST – representing three consecutive sessions of losses and contributing to an NYSE decline by 0.76% to EUR18,077.42; this performance left GameStop trading at EUR11.99 which is 56.64% off its 52-week high of EUR27.65.
About GameStop
GameStop Corp. is an established retailer of video games and entertainment products in the US, Canada, Australia and Europe, operating across multiple brands such as GameStop, EB Games, Micromania and Zing Pop Culture – operating under multiple brands such as GameStop itself – selling new and pre-owned gaming platforms, accessories, software titles, digital content downloads as well as collectibles. Furthermore, NFT trading markets such as NFT are utilized by GameStop in its marketplace operations as well. Founded in 1996 in Grapevine Texas
Yearly Analysis
On the basis of available information, here is a concise analysis of GameStop stock:
Yearly Top and Bottom ValueGameStop’s stock price has fallen below its 52-week low of EUR11.83, signalling to investors that bearish sentiment may prevail and that further downward movement in its stock is anticipated.
Anticipated Sales Growth for This and Next Years shows negative 6.4% and 4.9% growth respectively; these statistics suggest a potential decline in revenue which could negatively impact its financial performance.
Earnings Before Interest, Taxes, Depreciation and Amortization(EBITDA)GameStop’s EBITDA stands at -1.07 which indicates it does not generate positive earnings before accounting for interest, taxes, depreciation and amortization – this could be seen as a warning sign to investors that indicates this company may not be profitable and may lack sufficient cashflow for operations.
Based on this analysis, investors may want to approach GameStop stock with caution due to negative sales growth and earnings that do not show positive signs. It may be worthwhile considering other stocks with better financial performance and growth potential.
Technical Analysis
Moving averages are an invaluable way to assess stock performance in finance, and GameStop’s stock is no exception; trading below both its 50-day and 200-day moving averages could be seen as an indicator of declining performance.
Further, its volume is lower than average, which could suggest there is not as much interest in it now.
However, it should be noted that the stock’s volatility has been relatively low in recent weeks and months; its highest amplitude of average volatility being 11.44% last week, 3.84% last month, and 2.78% last quarter – suggesting it may currently be experiencing a period of relative stability.
GameStop’s stock may currently be overvalued according to its stochastic oscillator – an indicator used for measuring overbought and oversold conditions – as indicated by its stochastic oscillator (=80). This may signal that correction or pullback action should take place as GameStop appears overvalued at this time.
GameStop stock may currently be showing some negative indicators, including being below its moving averages and lower than average volume, yet its relatively low volatility and overbought status suggests a correction or pullback could be forthcoming. Investors are advised to monitor these indicators closely, seeking professional advice before making any investment decisions of their own.
Quarter Analysis
There are currently 14 people at this location. If anyone would like to join them they’re more than welcome! GameStop currently enjoys negative 7.1% sales growth for this quarter. Growth estimates for both this and next quarters stand at 75% and 57.1%, respectively.Revenue GrowthYear-on-year quarterly revenue growth declined 9.1% year over year to 5.71B during twelve trailing months.Stock PerformanceThroughout its 52 week existence, GameStop stock experienced highs of $22.80 while lows reached $4.52 – these prices being recorded as the high and low points, respectively. As of today, GameStop stock is trading at $8.02, which is 67.34% lower than its 52-week high and 71.11% above its 52-week low. GameStop’s earnings per share (EPS) have experienced an upward trajectory over the last five years from $0.53 in 2018 to $1.64 by 2022. Projected Earnings Per Share For 2023 Is $1.99.PE Ratio GameStop currently has an attractive PE ratio of 7.76, lower than the industry average of 16.46 and suggesting undervaluation. Dividend Yield GameStop offers a dividend yield of 1.32% which exceeds that of its industry counterpart which stands at 0.94%. Dividend Distribution This ratio indicates that GameStop may be allocating more of its earnings as dividends to shareholders than is typical for other retailers in its industry. Their debt-to-equity ratio stands at 0.28, significantly lower than industry standards of 0.55. GameStop stands out among its peers by having lower debt levels compared to others in its industry, which suggests lower levels of debt than its peers. Institutional OwnershipInstitutional ownership for GameStop’s stock is estimated to be at 87.3% – higher than its industry average of 68.9%. Institutional investors clearly hold an enthusiastic position with GameStop, with institutional holdings representing 41% of its total equity investment portfolio and institutional ownership at 46% of GameStop stock versus an industry average of 12.9%. Insider ownership stands at 0.7% of GameStop shares which is significantly less than industry norms of 12.9%. Insiders appear less optimistic about GameStop’s future prospects compared with their peers, suggesting they may lack faith in its prospects as much. GameStop has an outstanding short interest of 16.5% – exceeding even that of its peers at 4.5%. Technical AnalysisGameStop’s stock is currently trading above both its 50-day moving average of $7.64 and 200-day moving average of $10.24, suggesting more bearish sentiment compared to its peers. The relative strength index (RSI) for GameStop sits at 50.59, indicating its stock is neutral.Fundamental AnalysisGameStop operates in the retail industry specializing in video game and entertainment products and services. The company has seen declining revenue growth but an uptick in EPS over the last five years. Furthermore, their PE ratio may indicate undervaluation in their stock. GameStop stands out among its peers with a lower debt-to-equity ratio and increased institutional ownership, both factors which demonstrate its strong position. But insider ownership and short interest are lower than industry norms, suggesting bearish sentiment towards GameStop stock. ConclusionOverall, GameStop’s stock has experienced declining revenue growth while seeing an uptick in earnings per share (EPS).
Equity Analysis
There’s an air of mystery around it all; like when an old gentleman tells a tall tale with no need of rhymes. However, GameStop has attempted to adapt by expanding their e-commerce capabilities and offering digital content through their website and mobile app. Due to competition from retailers like Amazon and Walmart as well as digital distribution platforms such as Steam and the PlayStation Store. ValuationGamStop may have a high price to earnings ratio of 573.5 at present; however, investors should take note of its growth potential and position within an ever-evolving video game industry when considering valuation. GameStop currently stands out with an attractive debt to equity ratio of 0.48, signalling its relatively healthy balance sheet as an investment opportunity for some investors. Looking ahead, GameStop appears to be in transition and it remains uncertain how successful they will be at adapting to an ever-evolving industry landscape. Thus, investing in these assets may represent a high-risk proposition. However, for investors willing to accept this risk, the current price-to-earnings ratio of 573.5 could represent an attractive investment opportunity, particularly if the company can adapt effectively to an ever-evolving video game industry.
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