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GameStop Corporation (GME) Stock Analysis

Catalyst-Driven edge

SellModerate Confidence

Consumer Cyclical · Specialty Retail

Sell if holding. Engine safety override at $21.94: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: High short interest: 14%; Below-average business quality; Negative price momentum.

GameStop is a specialty retailer of new and pre-owned video game hardware, software, and accessories operating approximately 3,200 stores in the United States, Canada, Australia, and Europe. It earns revenue through brick-and-mortar and online sales, with increasing emphasis on... Read more

$21.94+20.2% A.UpsideScore 4.6/10#17 of 18 Specialty Retail
QualityF-score7 / 9FCF yield-1.63%
Stop $20.78Target $26.34(resistance)A.R:R 0.0:1

Sell if holding. Engine safety override at $21.94: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: High short interest: 14%; Below-average business quality; Negative price momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.6/10, moderate confidence.

Passes 5/7 gates (clean insider activity, no SEC red flags, earnings proximity 21d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.

Recent Developments — GameStop Corporation

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Supplier: Nintendo, Sony, and The Pokémon Company (new product purchases majority)
Quality below floor (3.7 < 4.0)

Key Metrics

P/E (TTM)28.5
P/E (Fwd)18.1
Mkt Cap$9.8B
EV/EBITDA17.3
Profit Mgn11.5%
ROE8.1%
Rev Growth-13.9%
Beta1.83
DividendNone
Rating analysts8

Quality Signals

Piotroski F7/9

Options Flow

P/C0.54bullish
IV64%elevated
Max Pain$13-40.7% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHSupplierNintendo, Sony, and The Pokémon Company (new product purchases majority)
    10-K Item 1A: 'which collectively accounted for a majority of our new product purchases in fiscal 2025'

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

Rating Breakdown

3 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Obv
1.0
Ma Position
2.2
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+0.4%/30d) — pullback in uptrend, not confirmed weakness

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
4.9
Best-in-class margins

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

Fcf Quality
0.0
Roa
1.5
Gross Margin
2.6
Roe
2.7
Moat
3.1
Current Ratio
5.0
Operating Margin
5.2
Net Margin
5.8
Piotroski F
7.8
Earnings quality RED FLAG: -38% FCF/NINo competitive moatStrong Piotroski F-Score: 7/9
GatesMomentum 1.3<4.5A.R:R UPSIDE_EXHAUSTED (upside=0.0%)Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 21d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
36 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $21.42Resistance $26.88

Price Targets

$21
$26
A.Upside+20.1%
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.7 < 4.0)
! Momentum score 1.3/10 — below 4.5 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-06-09 (21d)

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 $21.94: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: High short interest: 14%; Below-average business quality; Negative price momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $20.78. Score 4.6/10, moderate confidence.

What is the GME stock price target?

Take-profit target: $26.34 (+20.2% upside). Prior stop was $20.78. Stop-loss: $20.78.

What are the risks of investing in GME?

Concentration risk — Supplier: Nintendo, Sony, and The Pokémon Company (new product purchases majority); Quality below floor (3.7 < 4.0).

Is GME overvalued or undervalued?

GameStop Corporation trades at a P/E of 28.5 (forward 18.1). TrendMatrix value score: 7.0/10. 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 is a specialty retailer of new and pre-owned video game hardware, software, and accessories operating...

GameStop is a specialty retailer of new and pre-owned video game hardware, software, and accessories operating approximately 3,200 stores in the United States, Canada, Australia, and Europe. It earns revenue through brick-and-mortar and online sales, with increasing emphasis on pre-owned products and collectibles as new physical game sales decline.

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