Zacks Investment Research now gives GameStop (NYSE:GME) a strong buy due to the company’s progression and solid balance sheet.
According to the research company, GameStop’s significant progress since the pandemic has led it to be a strong buy.
“GameStop has outpaced the industry in the past three months.
The company has been progressing well with tis growth endeavors while maintaining a solid balance sheet.
The company has been taking initiatives to diversify its business and become a more technology-driven firm.
GameStop has also been pursuing opportunities in cryptocurrency, non-fungible tokens and Web 3.0 gaming.”
Zacks Investment Research also highlights how investors looking to enter a position in GME stock will gain the most opportunity in the short-term rather than the long term.
“Zacks’ proprietary data indicates that GameStop Corp. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the GME shares relative to the market in the next few months.
In addition, GameStop Corp. has a VGM Score of D (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style).
Valuation metrics show that GameStop Corp. may be overvalued.
Its Value Score of F indicates it would be a bad pick for value investors.
The financial health and growth prospects of GME, demonstrate its potential to underperform the market.
It currently has a Growth Score of B.
Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.”
While traders might be on the lookout for big swings, it’s important to take the research investment’s report with a grain of salt.
After all, a strong community with abundant purchasing power is what drives momentum.
Zacks Research has given GME stock a price target of $38 between the next 6-12 months.
At the time of this writing, GameStop is trading at $32.96.
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Also Read: The SEC Now Rejects A FOIA Request For Missing GameStop FTD Data
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