GameStop (GME) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - GameStop (GME) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for GameStop suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Recent Performance and Projections - GameStop is projected to earn $0.08 per share for the fiscal year ending January 2025, representing a year-over-year increase of 33.3% [8]. - Over the past three months, the Zacks Consensus Estimate for GameStop has surged by 200% [8]. Zacks Rating System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating [9][10]. - GameStop's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].