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Zacks Bull of the Day Highlights: GameStop Corp

GameStop's stock success proving gaming leading digital entertainment

Zacks Equity Research highlights GameStop Corp. as the Bull of the Day yesterday. Full analysis of all stocks are available at http://at.zacks.com/?id=2676.

Bull of the Day:

Our Bull of the Day recommendation is for GameStop

We are increasing our estimates ahead of GameStop's third quarter earnings report, which is scheduled for November 20. Our higher estimates are a result of the strong results out of Activision and scorching Halo sales during the quarter. GameStop is well-positioned to take advantage of what is sure to be a robust holiday season for video games and systems. The current video game cycle is hot right now because of the three next-generation platforms: Nintendo (Wii), Microsoft (XBOX 360), and Sony (PlayStation 3). GameStop's success is not tied to any one of these systems or any particular video game company. GameStop's growth comes from the continued popularity of all video games. All told, GameStop remains our favorite stock in the retail sector. We reiterate our Buy rating and increase our target price from $60 to $65, which represents a P/E-to-growth ratio of 1.3x our fiscal 2008 EPS estimate.