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Video game retailer GameStop (NYSE:GME) shares continued gains for seven straight sessions, as the stock closed 5.8% higher at $28.54 on Tuesday.
The company, which was at the center of the meme stock rally back in 2021, gained over 10% in the preceding six sessions. The stock has gained nearly 61% so far this year, compared to the over 18% rise in the broader S&P 500 Index.
The stock closed 3.65% higher on Monday at $27. It is down 4% over the past one month.
However, analysts are not quite impressed. Looking at Seeking Alpha's Quant Rating, GME has a Hold rating with a score of 3.35 out of 5. The company received A+ in momentum, while it got a D and F in the prospect of profitability and valuation.
Turning to the Wall Street community, one analyst covering the stock in the last 90 days rated it a Strong Sell. Seeking Alpha analysts also see the stock as a Sell.
“While GameStop has tried to get its finances in order, the cash hasn't been used to change its business meaningfully,” pointed out a recent Seeking Alpha analysis.
Another Seeking Alpha analysis said GME’s valuation also is not justifiable, and it is fundamentally a business declining.
“A FOMO rally has led to some significant short-term price gains for shares of GameStop lately, but this optimism is not justified from a financial and valuation point of view,” it added.
Last month, the company reported a 28% slide in revenue. However, shares rose over 30% premarket after the Roaring Kitty YouTube channel, which Keith Gill used in 2020 and 2021, scheduled a livestream.
Gill faced securities fraud claims in a class-action lawsuit over the recent flurry of social media posts that saw the share price of GameStop swing wildly in May and June.