GameStop stock: buy or sell
Updated on:
May 17th, 2021
1
GameStop stock brief
- GameStop stock sank -2.78% to close at $159.92 on the stock market last Friday.
- GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe.
Should I buy GameStop stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $GME stock a buy?
In the current situation of GameStop there is not any eligible buy setup. This doesn't mean we expect a selloff for $GME in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems
Should I sell GameStop stock?
When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the good moment to sell and get your profits. Trading strategies let us to avoid impetuous decisions based on our moods or the buzz surrounding the market. Our trading system selects very simple setups to guide us on when is the best time to sell a stock. Be aware that these setups are not intended for shorting $GME stock
A guiding principle is that you should never hold a trade that produces greater losses than those expected by the time of purchase. The timing to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell GameStop stock?
In the current situation of GameStop there is not any eligible sell setup, so GameStop stock holders with operations in profit can keep their positions
GameStop ratings
In the last month, just one brokerage rating was published for GameStop
| Brokerage firm | Rating |
|---|---|
| Apr 19th, 2021 | |
| Ascendiant Capital Markets | Neutral → |
GameStop stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Relative strength index
The RSI dropped below the overbought level of 70 last March after just crossing to the overbough zone for 1 day (weak signal). The RSI reading last Friday was 49.43. GameStop shares dropped a 39.54% since then
GameStop stock price history
GameStop started trading priced at an adjusted price1 of $6.48 on Feb 2002. Since then, GME stock surged by 2,367.90%, with an average of 124.63% per year. An investment of thousand dollars at that time would be valued $24,679.01 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for GameStop stock
Nobody knows how much a stock will be priced tomorrow. Banks and financial organisations issue their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, financial institutions release their price forecasts based on the stock price action and the company fundamental data. Most of these predictions follow the publication of new fundamental information by the company, and usually. Again, these estimates are not direct recommendations for small traders and must not be followed blindly.
In the last month we couldn't find any price target published for GameStop stock.
| Brokerage firm | Price target |
|---|---|
| Apr 19th, 2021 | |
| Ascendiant Capital Markets | Not available |
Earnings and financials
Last March, GameStop ($GME) had the earnings call and released the report. GameStop presented earnings of $1.34 per share on sales of $2.1 billion. The consensus earnings estimate was $1.35 per share on revenue of $2.2 billion.
For comparison, the EPS for the same quarter last year was $1.27, so posted EPS is a increase of 5.51%. Looking at revenue, figures only changed compared to $21.9B same quarter 12 months ago.GameStop ($GME) is releasing earnings report early next June. Wall Street analysts expect of $-0.68, that is a 150.75% lower than previous quarter.
GameStop competitors
GameStop belongs to the Consumer Cyclical sector and the Specialty Retail industry, which contain industry peers.
GameStop main competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| GameStop ($GME) | $13.6B | | 0 |
| Apple ($AAPL) | $2.0T | | 20 |
| AT&T ($T) | $214.7B | Buy | 2 |
| Best Buy ($BBY) | $28.1B | Neutral | 0 |
1 In the last 30 days.
GameStop performance
To better understand GameStop performance you must compare its gains with other related stocks in same sector or industry.. For GameStop, the benchmark is made against Apple, AT&T and Best Buy.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| GameStop ($GME) | 2.50% | 203.70% | 1,262.20% |
| Apple ($AAPL) | -4.90% | -5.80% | 6.90% |
| AT&T ($T) | 7.80% | 13.80% | 17.10% |
| Best Buy ($BBY) | 0.40% | 0.50% | 6.40% |
Disclaimer:
The viewpoints published in this article are personal and not recommendations for you to buy or sell shares. The author of this article does not have an understanding of the specific scenarios of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for general educational motives onlyGameStop summary
| Friday, May 14th, 2021 | |
|---|---|
| Open | $160 |
| Close | $159.92 |
| Day range | $156.22 - $166.47 |
| Previous close | $164.5 |
| Session gain | -2.78% |
| Average true range | $16.53 |
| 50d mov avg | $178.12 |
| 100d mov avg | $123.73 |
| 200d mov avg | $66.65 |
| Earnings date | June 8th, 2021 |