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GameStop Corporation (GME) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5High Confidence

Consumer Cyclical · Specialty Retail

Sell if holding. Engine safety override at $24.66: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.8/10. Specifically: High short interest: 15%; Elevated put/call ratio: 2.53; Below-average business quality.

GameStop sells games, collectibles, and entertainment products through its store network and e-commerce across three geographic segments (U.S., Australia, Europe), while pivoting strategy toward capital allocation and potential acquisitions. Revenue is declining as digital... Read more

$24.66+3.4% A.UpsideScore 3.8/10#18 of 18 Specialty Retail
Stop $22.94Target $25.50(resistance)A.R:R 0.0:1

Sell if holding. Engine safety override at $24.66: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.8/10. Specifically: High short interest: 15%; Elevated put/call ratio: 2.53; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Score 3.8/10, high confidence.

Passes 4/6 gates (clean insider activity, no SEC red flags, earnings proximity 40d clear, semi cycle peak clear). Fails on weak momentum. Suitability: aggressive.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (4.0 < 4.0)

Key Metrics

P/E (TTM)31.8
P/E (Fwd)30.3
Mkt Cap$11.0B
EV/EBITDA21.2
Profit Mgn11.5%
ROE8.1%
Rev Growth-13.9%
Beta1.85
DividendNone
Rating analysts8

Quality Signals

Piotroski F7/9

Options Flow

P/C2.53bearish
IV59%elevated
Max Pain$13-47.3% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMProductPokemon trading cards
    10-K Item 1A: 'A significant portion of revenue and profit in our collectibles product category is generated from the sale of trading cards, including Pokemon trading cards'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

4 floor-breakers

Revenue shrinking — -13.9% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Earnings Growth
3.0
Declining revenue: -14%

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.0
Value Rank
1.7
Quality Rank
4.8
Best-in-class margins

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Peg Ratio
2.0
Forward Pe
3.9
Pe
4.1
Ps
8.3
Forward P/E: 30.3xPEG: 5.83

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Support Resistance
3.8
52w Position
3.8
Bollinger
3.9
GatesMomentum 4.2<4.5A.R:R UPSIDE_EXHAUSTED (upside=0.0%)Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 40d clearSEMI CYCLE PEAK CLEARBreakoutSuitability: Aggressive
RSI
61 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $22.51Resistance $26.02

Price Targets

$23
$26
A.Upside+3.4%
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (4.0 < 4.0)
! Momentum score 4.2/10 — below 4.5 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-06-09 (40d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is GME stock a buy right now?

Sell if holding. Engine safety override at $24.66: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.8/10. Specifically: High short interest: 15%; Elevated put/call ratio: 2.53; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Prior stop was $22.94. Score 3.8/10, high confidence.

What is the GME stock price target?

Take-profit target: $25.50 (+3.4% upside). Prior stop was $22.94. Stop-loss: $22.94.

What are the risks of investing in GME?

Quality below floor (4.0 < 4.0).

Is GME overvalued or undervalued?

GameStop Corporation trades at a P/E of 31.8 (forward 30.3). TrendMatrix value score: 3.4/10. Verdict: Sell.

What do analysts say about GME?

8 analysts cover GME with a consensus score of 2.0/5.

What does GameStop Corporation do?GameStop sells games, collectibles, and entertainment products through its store network and e-commerce across three...

GameStop sells games, collectibles, and entertainment products through its store network and e-commerce across three geographic segments (U.S., Australia, Europe), while pivoting strategy toward capital allocation and potential acquisitions. Revenue is declining as digital downloads erode physical software sales; Pokemon trading cards represent a significant portion of collectibles profit.

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