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Home
Stocks
GameStop Corp.
EL7 Factor Analysis
How we score this
Overall60
Balanced — near the middle of the marketContrarianF 7/9Grey zoneInsider cluster buyBetter than 60% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
69
13.7x▲17.8xTop tier
▸
Growth
43
-7.7%▼7.1%Around median
▸
Quality
52
2.8%▼4.5%Around median
▸
Safety
61
—2.6xAround median
▸
Capital Return
77
—2.12%Top tier
▸
Momentum
27
-19.1%▼2.9%Bottom tier
▸
Sentiment
78
1▼3Top tier
GME

GME GameStop Corp.

GameStop Corp. · NYSE
Market Closed
21.15
▲ ⁦+3.73%⁩ (+0.76)
Market Cap$9.5B
Beta1.74
52w Low52w High
17.7928.10
Last Week
⁦+11.49%⁩
Last Month
⁦+12.38%⁩
Last 3 Months
⁦-5.66%⁩
Last Year
⁦-10.34%⁩
Fair Value
Current price$21
Analyst target · 1 analysts
$18
⁦-14%⁩
See it slightly overvalued
Range ⁦$12–$25⁩
vs
DCF (estimate)
$21
⁦+0%⁩
Sees it fairly priced
⁦12.1⁩% discount · ⁦6⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$18–$21⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 1 analysts setting price target
$18.25
⁦-13.7%⁩
Current Price $21.15·Median $18.25
Low
$11.50
High
$25.00
Current price
$21.15
Average target
$18.25
Street summary

GameStop (GME) Price Target Analysis

The average price target for GameStop has stabilized at $18.25 over the past 30 days, which is slightly below the current market price of $18.4. The sharp divergence between the high target ($25) and the low target ($11.5) reflects high uncertainty among analysts, despite the general consensus remaining unchanged recently.

As of 2026-08-17
Revisions momentum · 30d
⁦0.0%⁩
Analyst coverage
9
Target dispersion
64%
Wide
Analyst ratings over time
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months2.00 → —
Recent analyst moves
  • ⬆ Upgrade2026-08-10
    Morgan Stanley
    Overweight
  • = Reiterate2025-03-26
    Wedbush
    Underperform· $11.50
  • = Reiterate2024-09-09
    Wedbush
    —· $11.00
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    13.73x
    4.56x36.49x
    Cheap
  • Forward P/E
    15.75x
    3.79x30.29x
    Cheap
  • EV / EBITDA
    9.33x
    2.75x22.03x
    Cheap
  • FCF Yield
    6.4%
    -30.9%16.2%
    Strong
  • Revenue Growth YoY
    -7.7%
    -13.8%31.9%
    Below average
  • EPS Growth YoY
    92.5%
    -156.9%135.6%
    Strong
  • Gross Margin
    37.9%
    12.0%66.5%
    Near median
  • ROIC
    2.8%
    -23.8%21.5%
    Above average
  • Net Debt / EBITDA
    —
    —
  • Dividend Yield
    —
    —
  • Payout Ratio
    —
    —
  • Altman Z-Score
    2.42
    -2.656.14
    Above average
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2023-03-21 data

Company Overview

GameStop Corp. sells video game products through stores and online channels, with sales sources including video games, collectibles, and toys, along with pre-owned products supported by the company’s refurbishment and resale capabilities. Its operating model centers on integrating online shopping with stores, securing allocations of gaming hardware to meet demand, improving supplier terms, and expanding into higher-margin categories such as collectibles and toys.

In Q2 fiscal 2026, revenue was $790.2 million and gross profit was $345.0 million, representing a calculated gross margin of approximately 43.7%. Net income according to EDGAR data was approximately $298.7 million, or $0.51 per share, while quarterly operating income reached a record $160.2 million. Revenue exceeded analysts’ estimates of $756.85 million but declined 19% year over year.

The Q2 fiscal 2026 mix showed a clear shift toward collectibles; sales rose 57% to $356.3 million, representing approximately 45% of total revenue, while traditional video game revenue declined to just over $263 million, or approximately one-third of revenue. For the trailing twelve-month period in fiscal 2026, the company recorded revenue of $3.6 billion, gross profit of $1.3 billion, and net income of $893.3 million.

What's Driving the Stock

  • Q2 fiscal 2026 revenue exceeded expectations by approximately $33.4 million, alongside record quarterly operating income of $160.2 million, making improved operating efficiency the direct driver of the stock’s reaction on September 9, 2026.
  • Collectibles sales jumped 57% to $356.3 million in Q2 fiscal 2026 and came to represent approximately 45% of revenue, showing that growth in this category is reshaping GameStop’s business mix away from complete reliance on traditional video games.
Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • Q2 fiscal 2026 net income was approximately $298.7 million, within the company’s previously announced range of $290–310 million, compared with $168.6 million in the prior-year quarter.
  • GameStop updated its fiscal 2026 outlook following its second-quarter results, while reports dated August 11, 2026 indicated expectations for earnings before interest, taxes, depreciation, and amortization to exceed $600 million and a cash position of $4.2 billion.
  • The company amended agreements for 0.00% convertible notes due in 2030 and 2032 so that approximately $358.4 million of their principal amount would be settled in cash rather than through the issuance of shares, reducing potential shareholder dilution.
  • Buying & Selling Case

    ▲ Buying Case5 pts

    • +GameStop has shifted to strong profitability; net income reached $893.3 million during the trailing twelve-month period in fiscal 2026, compared with net income of $418.4 million in fiscal 2025.
    • +The 57% growth in collectibles to $356.3 million in Q2 fiscal 2026 provides a tangible path for diversifying revenue toward a category that management described as higher-margin.
    • +Record operating income of $160.2 million in Q2 fiscal 2026 reflects the company’s ability to improve profitability even as total sales declined 19% year over year.
    • +The $4.2 billion cash position supports balance-sheet flexibility and also enabled the company to choose to settle $358.4 million of convertible notes in cash rather than issuing new shares.
    • +A board member purchased $1 million worth of shares in the open market on September 9, 2026, increasing his total holdings by 62%.

    ▼ Selling Case6 pts

    • −Q2 fiscal 2026 sales declined 19% year over year to $790.2 million despite exceeding expectations, meaning the earnings improvement occurred in an environment where the scale of the core business was shrinking.
    • −Traditional video game revenue in Q2 fiscal 2026 declined to just over $263 million, while collectibles came to represent approximately 45% of revenue; therefore, the sustainability of the shift has become tied to the ability of collectibles growth to offset weakness in the traditional category.
    • −Net income declined from $389.6 million in Q1 fiscal 2026 to $298.7 million in Q2 fiscal 2026, a calculated sequential decline of approximately 23%, despite profitability remaining higher than in the prior-year period.
    • −The cash settlement of notes with a principal amount of approximately $358.4 million protects shareholders from share issuance for this portion, but it uses a meaningful amount of the company’s liquidity to meet its obligations.
    • −The analyst consensus remains Neutral, with a wide target range of $11.5 to $25; this divergence reflects a lack of clear agreement on the value of the operating transformation and the sustainability of earnings.
    • −Insider activity over three months included two purchases and three sales, despite net purchases of approximately $823.4 thousand; insider sales remain a weak standalone signal because they may be prearranged unless the data indicates otherwise.

    Valuation

    The average analyst price target is $18.25, with a Neutral consensus and a wide range of $11.5 to $25. The average is approximately 2.6% above the lower end of the 52-week range of $17.79 and approximately 35% below the upper end of $28.1, while the available data does not provide a valid comparable price-to-earnings ratio. This positioning reflects caution toward the 19% sales contraction and weakness in traditional video games, despite record profitability and collectibles growth.

    HoldAnalyst target: $18.25(-13.7%)

    Figures in the text are as of 2026-09-10; the live price is shown at the top of the page.

    FAQ

    What drove GME’s Q2 fiscal 2026 results?

    Revenue was $790.2 million, exceeding analysts’ expectations of $756.85 million. Gross profit was $345.0 million, representing a calculated gross margin of approximately 43.7%, while record operating income reached $160.2 million. Net income according to EDGAR data was approximately $298.7 million, or $0.51 per share.

    Are GameStop’s sales still growing?

    Total sales declined 19% year over year in Q2 fiscal 2026 despite exceeding analysts’ estimates. Performance varied across categories; collectibles jumped 57% to $356.3 million, while traditional video games declined to just over $263 million. The results therefore reflect strong growth within collectibles, not broad-based growth in the company’s revenue.

    How important are collectibles to GameStop’s business?

    Collectibles generated sales of $356.3 million in Q2 fiscal 2026, up 57% year over year. This category represented approximately 45% of the quarter’s total revenue of $790.2 million. Its expansion is consistent with GameStop’s stated focus on higher-margin categories such as collectibles and toys.

    Why will GameStop repay part of its notes in cash?

    On August 31, 2026, GameStop amended agreements for 0.00% convertible notes due in 2030 and 2032. Under the amendment, the company will settle approximately $358.4 million of principal amount in cash rather than issuing new shares. This reduces potential ownership dilution but uses part of the cash position that stood at $4.2 billion according to an August 11, 2026 report.

    What are analysts saying about GME’s valuation?

    The analyst consensus is Neutral, and the average price target is $18.25. Targets range from $11.5 to $25, revealing significant divergence in assessments of the sustainability of the operating transformation. The average target is also close to the lower end of the 52-week range of $17.79 and significantly below the upper end of $28.1, while the available data does not include a usable price-to-earnings ratio.

    What does insider activity at GameStop reveal?

    Net insider activity over three months amounted to purchases of approximately $823.4 thousand, spread across two purchases and three sales. On September 9, 2026, a board member purchased $1 million worth of shares in the open market, increasing his holdings by 62%. However, these transactions alone are not sufficient to build an investment thesis because insider sales may be prearranged unless the data states otherwise.