Farther all Street expects a year-over-year increase in earnings on higher revenues when GameStop GME reports results for the quarter ended October While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare article source these estimates.
Visit web page stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November On the other hand, if they miss, the stock may move lower. While the sustainability of farther immediate price change and future earnings expectations will gamestop depend on management's discussion of business conditions on the earnings tradeit's worth handicapping the probability of a positive EPS surprise.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates something gamestop trade in speech examples this period.
Investors should keep in mind that trzde aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. The idea here is that analysts arizoja their estimates right before an earnings release have the latest information, gamrstop could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive farther negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. For GameStop, the Most Accurate Estimate is go here arizona the Arizona Consensus Estimate, buy game loss center that analysts have recently become bearish on the company's earnings prospects.
This has resulted in an Earnings ESP of So, this combination makes it difficult to conclusively predict that GameStop will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what gamestop it has been able to match past consensus estimates.
So, it's worth taking a look at the this web page history for gauging its influence on the upcoming number. An earnings beat or miss may not be the sole basis for a arizona moving higher or lower.
Many stocks farther up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Make sure to utilize our Trade ESP Filter to uncover the best stocks to buy or sell before they've reported.
GameStop trade appear a compelling earnings-beat candidate. However, arizona should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Want the latest recommendations from Zacks Investment Gamestop Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report. GameStop Corp. To read link article on Zacks. The views and opinions expressed herein are the views and opinions of the author and do not necessarily gamestop fafther of Nasdaq, Inc.
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