GameStop will report fourth-quarter earnings after the close today
GameStop Corp (NYSE:GME) stock is down 1.1% at $85.87 at last check -- not too far from its recent March 14 one-year low of $77.58. The stock's 50-day moving average provided a stiff ceiling on the charts from mid February through early March, and still lingers above as overhead pressure. Year-to-date, GME is down 42.1%. This slump comes ahead of the company's fourth-quarter earnings report, due out after the close today, in which analysts expect earnings of 84 cents per share.
Ahead of the event, the options pits are pricing in a post-earnings swing of 20.8%, regardless of direction, which is higher than the 14.1% move from the company's last eight quarters. Of these reports, only two of these post-earnings moves were positive -- which doesn't paint a very pretty picture for GME, historically.
There is plenty of short-covering potential. Short interest makes up 18.5% of the stock's available float, or nearly four days' worth of pent-up buying power.
GameStop stock could be due for a short-term bounce, too. The stock's 14-day relative strength index (RSI) of 30.9 is on the cusp of "oversold" territory.