GameStop Corp. has been on a roll lately, as the GME stock has been gradually been pulling themselves closer to their 52wk high of 344.66 . As a result of their recent performance, GameStop Corp. currently has a 4/5 rating, given to them by 21 analysts (which will be touched on later). GameStop Corp. is currently valued at 7.79B in terms of their market cap , and have approximately 76M shares outstanding. For more information about the GME stock, visit their Utradea stock profile.
As it currently stands, GME ‘s valuation is properly valued when comparing their stock/valuation multiples to their publicly-listed competitors. GME ‘s current market valuation (and analyst targets) is largely based on investor optimism and positive sentiment for the GME stock.
GME Stock Prediction Based on Valuation
Discounted cash flow ratings and models can help investors to evaluate the value of the stock based on the company’s underlying financials. These models can help investors to determine if the stock is undervalued, fairly valued, or overvalued; and the numerous sources that the value of their stock stems from. GME currently has a DCF valuation rating of 5 , which suggests that GME has strong fundamentals.
Wall Street analysts have determined the GameStop Corp. stock PE Ratio score to be 1 . This means that GME stock is heavily overvalued based on comparing the GME PE Ratio rating to the PE Ratio rating of their publicly-listed peers.
Furthermore, GME has a Return on Equity rating of 3 implying that they are fairly valued due to their ROE being averge.
Overall, these 3 measurements indiate that GME might be properly valued, which is a surprise to me.
*The ratings are given on a scale of 1 to 5, with 1 being a poor rating and 5 being an excellent rating. However one should also keep in mind that these ratings can change over a period of time*
GME Forecast and GME Stock Analyst Ratings
In total there are 21 GME analyst ratings. 4 GME analyst ratings are considered to be “buy ratings”, and 13 GME analyst ratings indicate that the stock is overvalued and have given GME a “sell” rating. This leaves the remaining 4 GME analyst ratings being “hold” ratings. Overall, there is a negative outlook on the GME stock from analysts.
Analyst Ratings have provided relatively strong indicators of future price movement, which is why they are used to determine a GME stock forecast. However, this shouldn’t be the only factor when determining whether to invest in GameStop Corp. , I would use Analyst Ratings as a datapoint along with other fundamental indicators and investment metrics. We have also seen the impact of Analyst Ratings on stock price, when it comes to upgrading or downgrading a stock. You can keep track of real-time upgrades and downgrades as they happen with The Utradea Feed . The alerts also include GME stock price predictions.
GME Comparison
GME has outperformed their peers with an average gain of 35.28% over the course of the past month. Over the same time frame GME’ s peers have gained an average of -9.47% . This goes to show how strong GME’s recent stock performance has been, and how they are currently trending upwards.
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Originally published at https://utradea.com.
