GameStop (GME) Stock Remains "Dangerous" Ahead of Earnings
Our preview of the upcoming week's earnings reports include GameStop (GME), Lennar (LEN) and FedEx (FDX).
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter

We've reached the tail end of earnings season, but there are a few more names likely to draw attention over the next few weeks. One of the headliner's on this week's earnings calendar is original meme stock GameStop (GME (opens in new tab), $96.59).
The video game retailer is scheduled to report its fourth-quarter results after the March 17 close.
GME stock fell 10.3% the day after it reported earnings in December, with the company reporting a third-quarter loss that was wider than the year prior. Another negative earnings reaction will only exacerbate its long-term downtrend, with shares off more than 62% in the last 12 months.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Even with this significant decline in GME's share price, it "remains a dangerous stock," says David Trainer, CEO of investment research firm New Constructs. This is because GameStop, like many of its fellow meme stocks, "remain dangerously overvalued and don't generate anywhere near the profits necessary to justify their current valuations."
This opinion seems to be shared by Wall Street analysts, who carry a consensus Sell recommendation on GME, according to S&P Global Market Intelligence.
As for GameStop's Q4 earnings report, analysts, on average, are anticipating earnings of 84 cents per share, down 37.3% year-over-year (YoY), and revenue of $2.2 billion – up 4.4% from the year-ago period.
Lennar Expected to Report Sharp Drop in Earnings
Lennar (LEN (opens in new tab), $87.22) stock put in a stellar performance in 2021, posting a total return (price plus dividends) of 53.7% amid a red-hot housing market.
Shares have cooled significantly in 2022, though, with LEN down nearly 25% for the year-to-date amid stiff broad-market headwinds.
Still, analysts are pretty upbeat toward Lennar. Of the 20 analysts following the homebuilder that are tracked by S&P Global Market Intelligence, eight say it's a Strong Buy and six call it a Buy. This compares to five who believe LEN's a Hold and one that has it at Strong Sell.
UBS Global Research analyst John Lovallo is one of those with a Buy rating on Lennar. Improving gross margins for homebuilders, order growth continuing to outpace new home sales, and the company's proposed spinoff of its non-core businesses are among the reasons Lovolla is bullish on the consumer discretionary stock.
For Lennar's fiscal first-quarter earnings report – due out after the March 16 close – analysts' consensus estimates are for a per-share profit of $2.60 (-18.8% YoY) on $6.1 billion revenue, a 15% increase over the year prior.
Analysts See Strong Earnings Growth for FedEx
FedEx (FDX (opens in new tab), $214.52) earnings are often seen as a bellwether, with results from the delivery giant giving Wall Street a glimpse into the trends of the broader economy including consumer spending, e-commerce and supply chains.
The company will report its fiscal third-quarter earnings report after Thursday's close. The pros, on average, are looking for $23.4 billion in revenue (+8.8% YoY) and earnings of $4.65 per share, or a 34% improvement over the year-ago figure.
FDX faced both positives and negatives in its fiscal third quarter that will likely lead to "mixed" results, says UBS Research analyst Thomas Wadewitz (Buy).
"On the positive side, we believe FDX likely realized sequential improvement in labor availability in their Ground business and a reduction in the network inefficiency cost relative to the second quarter," the analyst writes in a note. Still, Wadewitz sees the potential for modestly declining margins in FedEx's Ground segment due to rising labor costs.
For his part, the analyst sees year-over-year revenue growth of 11.1% and earnings-per-share growth of 28.2% in FDX's fiscal third quarter.
With over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
-
How to Protect Your Cash and Investments in a Banking Crisis
A focus on FDIC insurance and Treasury-only money market or bond fund options can help safeguard investments when a banking crisis threatens.
By Peter Newman, CFA • Published
-
Maximize Charitable Giving Tax Savings and Give All Year
Thinking of December as ‘contribution season,’ paired with using tax-savvy giving tools, can help you spread the generosity all year long.
By Mark Froehlich, CPA, MBA • Published
-
Stock Market Today: Stock Market Struggles While Alibaba Shines
Tech and communication services stocks were two of the worst performers today as Treasury yields rose.
By Karee Venema • Published
-
Stock Market Today: Stocks Finish Mostly Higher After First Citizens Buys SVB Assets
The Nasdaq closed lower, though, as mega-cap tech stocks declined.
By Karee Venema • Published
-
Stock Market Today: Stocks Brush Off Deutsche Bank Troubles
Troubling financial sector headlines kept stocks lower for most of the day, but the major indexes pushed higher by the close.
By Karee Venema • Published
-
Stock Market Today: Stocks Close Higher in Volatile Session
The major indexes spent most of Thursday in rally mode, but selling pressure emerged in afternoon trading.
By Karee Venema • Published
-
If You'd Put $1,000 Into Amazon Stock 20 Years Ago, Here's What You'd Have Today
Amazon AMZN stock has lost almost $900 billion in value since its all-time high, but bulls say it's only a matter of time before it reclaims its heights.
By Dan Burrows • Published
-
Stock Market Today: Stocks Sink After Latest Fed Rate Hike
The major indexes sold off sharply Wednesday even amid signs the Fed's rate-hike campaign could be nearing an end.
By Karee Venema • Published
-
Stock Market Today: Markets Up Again as Bank, Energy Stocks Outperform
The major indexes closed higher for a second straight day ahead of tomorrow's highly anticipated Fed decision.
By Karee Venema • Published
-
Stock Market Today: Stocks Rise Ahead of Fed
Bank headlines dominated another choppy day of trading on Wall Street.
By Karee Venema • Published