Analysts rate GameStop Corp. (GME:NYE) with a Sell rating and a $44 target

STA Research
by: STA Research
GameStop Corp.

Based on the GameStop Corp stock forecast from 2 analysts, the average analyst GME stock price target is USD 44.38 over the next 12 months. GameStop Corp’s average analyst rating is Sell. Stock Target Advisor’s own stock analysis of GME stock forecast is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, GameStop stock price was USD 31.55GameStop stock price has changed by -2.95% over the past week, -2.46% over the past month and -39.67% over the last year.

About GameStop Corp. (GME:NYE):

GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

High dividend returns:

GameStop stock price history has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the GME stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

 

What we don’t like:

High volatility:

GameStop stock price history shows that the total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

GME stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

GME stock price is trading high compared to its peers median on a price to book value basis.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

GameStop stock price history has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

GameStop stock price history has shown below median revenue growth in the previous 5 years compared to its sector

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