Last Updated: 14 Sep 2024
Executive Summary
GameStop Corp. (GME) is a specialty retailer of video games, consumer electronics, and gaming merchandise. The company's stock has been volatile in recent years, but it has outperformed the broader market over the past year. The latest stock price is $20.65, which is below the analyst target price of $7.88.
Company Overview
GameStop was founded in 1984 and is headquartered in Grapevine, Texas. The company operates over 4,500 stores in the United States, Canada, Europe, and Australia. GameStop's primary business is the sale of video games, but the company also sells a variety of other products, including consumer electronics, gaming merchandise, and collectibles.
Fundamental Analysis
GameStop's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years, and its net income has been negative in two of the past three years. However, the company's profitability has improved in recent quarters, and its gross profit margin has expanded.
GameStop's balance sheet is relatively strong. The company has a low level of debt and a high level of cash and equivalents. This gives the company the financial flexibility to invest in new growth initiatives.
Technical Analysis
GameStop's stock price has been in a downtrend since early 2021. The stock price broke below its 200-day moving average in March 2022, and it has continued to decline since then. The stock price is currently trading below its 50-day moving average, which is a bearish technical indicator.
Short Term Outlook
The short-term outlook for GameStop's stock is negative. The stock price is in a downtrend, and there are no signs of a reversal. The stock price is also trading below its analyst target price, which is another bearish indicator.
Long Term Outlook
The long-term outlook for GameStop's stock is uncertain. The company's financial performance has been mixed in recent years, and the stock price has been volatile. However, the company has a strong brand name and a loyal customer base. This gives the company the potential to turn around its business and improve its stock price performance over the long term.
Analyst Recommendations
The majority of analysts who cover GameStop have a sell rating on the stock. The average analyst target price is $7.88, which is below the current stock price. This suggests that analysts believe that the stock is overvalued and that it is likely to decline in the future.
