The latest trading session saw GameStop (GME) ending at $26.84, denoting a -1.54% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw a decrease of 0.09%.

Coming into today, shares of the video game retailer had gained 27.8% in the past month. In that same time, the Consumer Discretionary sector gained 6.91%, while the S&P 500 gained 3.3%.

Investors will be eagerly watching for the performance of GameStop in its upcoming earnings disclosure. Meanwhile, our latest consensus estimate is calling for revenue of $900 million, down 16.54% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.01 per share and a revenue of $4.03 billion, indicating changes of -83.33% and -23.57%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for GameStop. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, GameStop holds a Zacks Rank of #3 (Hold).

In terms of valuation, GameStop is currently trading at a Forward P/E ratio of 2726. This expresses a premium compared to the average Forward P/E of 24.2 of its industry.

The Gaming industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 42% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.