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GameStop (GME) Could Be 89% Below Fair Value After Its Latest Profit Turnaround

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GameStop (GME) has re-entered the spotlight after a sharp single day move, with the share price closing at $25.02. Recent returns over the past month and the past 3 months highlight renewed trading interest.

This latest jump builds on a strong run, with a 30 day share price return of 38.31% and a 90 day share price return of 14.98%. The year to date move of 21.34% suggests momentum in GameStop is picking up, even though the 1 year total shareholder return is broadly flat at 0.17% and the 5 year total shareholder return shows a 42.29% decline.

Scan past the GameStop headlines and see how it compares to a hand picked 30 high quality undervalued stocks that currently combine momentum, cash generation, and balance sheet support.

After a sharp single day move and a year to date gain of 21.34%, the real tension around GameStop now sits in a simple question: Does the current price still leave enough upside to justify the risk?

Most Popular Narrative: 89% Undervalued

According to one of the most followed GameStop narratives, the share price of $25.02 sits far below an argued fair value of $220, which puts a lot of weight on how investors interpret the recent turnaround story.

GameStop's Q1 2025 financials, combined with an engaged shareholder community, have been described as showing its takes-money-to-buy-whiskey strategy at work and as demonstrating its status as a compelling investment, as some retail investors have been saying for years while criticizing legacy media, bots, social media activity and hedge funds. Gamestop reported an adjusted EPS of $0.17, compared with certain estimates that implied a 325% positive surprise, and recorded a $44.8 million net profit, compared with last year's $32 million loss.

See why 64 investors see GameStop as 89% undervalued .

Result: Fair Value of $220 (UNDERVALUED)

Still, the GameStop narrative could be knocked off course if the legacy retail footprint weakens further, or if any large acquisition misfires and erodes that cash cushion.

Find out about the key risks to this GameStop narrative .

Next Steps

Sentiment around GameStop is split, so consider acting while opinions are still forming and test the numbers yourself before the crowd settles. To see which potential upsides our data highlights, review the 2 key rewards .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GME .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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