Recs

5

4-Star Stocks Poised to Pop: GameStop

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game retailer GameStop (NYSE: GME  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at GameStop's business and see what CAPS investors are saying about the stock right now.

GameStop facts

Headquarters (Founded)

Grapevine, Texas (1994)

Market Cap

$3.9 billion

Industry

Electronics stores

Trailing-12-Month Revenue

$8.91 billion

Management

CEO Daniel DeMatteo (since 2008)
CFO David Carlson (since 2000)

Return on Equity (Average, Past 3 Years)

16.9%

Compound Annual Revenue and Net Income Growth (Over Past 5 Years)

39.8% and 43.1%

Cash/Debt

$197.9 million / $495.8 million

Competitors

Amazon.com (Nasdaq: AMZN  )
Best Buy (NYSE: BBY  )
Wal-Mart Stores (NYSE: WMT  )

CAPS Members Bullish on GME Also Bullish on

Google (Nasdaq: GOOG  )

CAPS Members Bearish on GME Also Bearish on

Citigroup (NYSE: C  )
Ford (NYSE: F  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 245 members who have rated GameStop believe the stock will outperform the S&P 500 going forward. These bulls include hendrixtrader and TWreckz.

Late last month, hendrixtrader tapped GameStop as a great way to engage in some Modern Warfare: "[GameStop] is here to stay. ... Modern Warfare 2 and Assassins Creed 2 will boost next quarter sales. Parents will do what makes their kids happy. GameStop makes kids happy."

In an earlier pitch, TWreckz also encouraged Fools to get in the game:

GameStop has the best model for buying/selling used games. I think that even in hard times, people will still buy video games; they're a pretty good value, seeing as how you can buy one game for a relatively inexpensive price (especially a used game) and get tons of hours of entertainment out of it. I think they will also benefit from sales of some of the more anticipated titles coming out in the next 6 months.

What do you think about GameStop, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GameStop, Amazon, and Best Buy are all Motley Fool Stock Advisor picks. Best Buy is also an Inside Value choice, as is Wal-Mart. Google is a recommendation of Rule Breakers. The Fool owns shares of Best Buy. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:01 PM
GME $19.52 Up +0.35 +1.83%
GameStop CAPS Rating: **
F $10.60 Up +0.01 +0.09%
Ford CAPS Rating: ****
GOOG $591.53 Down -12.13 -2.01%
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C $26.47 Down -0.19 -0.71%
Citigroup Inc CAPS Rating: ***

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