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
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) |
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 |
CAPS Members Bullish on GME Also Bullish on |
Google |
CAPS Members Bearish on GME Also Bearish on |
Citigroup |
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!