GameStop (GME) – Bull of the Day
Source: http://www.zacks.com/commentary/10450/GameStop+%28GME%29+-+Bull+of+the+DayPosted on Monday, March 30th, 2009 | In Stocks to Watch
Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -
GameStop (GME) reported strong results for the fourth quarter. Sales increased 22% year-over-year, and EPS grew 18% to $1.34, which was at the top end of the company’s guidance.
In addition, GameStop’s outlook for 2009 was equally bullish. The company expects total sales growth of 10%-12.0%, comp-store sales growth of 4.0%-6.0%, and EPS of $2.82-$2.92. We think the company’s results demonstrate that video game sales will continue to hold up better than other areas of retail during this challenging environment.
Despite the continued strength of its results, GME shares trade at about 9x fiscal 2009 consensus EPS estimates. We maintain our Buy rating and $34 target price.
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