GameStop Corp (GME) just had an amazing quarter with net income rising 53% and revenue rising 38%. At Market Flavor we recommended GME to our members before the numbers were released, with confidence in strong sales.

This strong quarter was attributed to the release of the video game World of WarCraft and the new Nintendo Wii and Sony PS3 gaming consoles. The release of these two video game systems was highly anticipated with people saving and waiting until they came out. People waited in line for days to get these video game systems. Now that these new systems are out, owners are going to be purchasing games and accessories to go with them. Microsoft has also announced a new XBOX 360 (Xbox 360 Elite) with all the bells and whistles to compete with the Sony PS3. Xbox 360 is still the highest seller out of all the recent console releases. The XBOX 360 Elite will just continue to add to the growing sales at GameStop.

So we know sales are increasing and should continue to look good, but what about the financial condition of the company? GME trades at a 31.5 P/E ratio which is fairly low compared to their P/E chart. Read more about P/E ratios and P/E charts. Estimates for next years earnings reflect a 36.75% increase. The Market Flavor financial analysis shows that GameStop (GME) is strong with above average growth potential. The current P/E is high but supported by increasing strong growth.

At Market Flavor we have had GME as a buy and continue to keep is at a buy with strong forward earnings estimates and strong estimated sales.