GameStop Corp. (NYSE: GME) carries a Forward P/E ratio of 22.77, a notable premium over the gaming industry’s average of 15.85, even as its financial projections point downward.

That elevated valuation sits uncomfortably alongside analyst forecasts calling for a 16.67% drop in earnings per share in the company’s upcoming quarterly release.

The consensus EPS estimate for that period stands at $0.20, while projected revenue of $722.5 million would represent a 12% decline from the equivalent quarter a year earlier.

For the full fiscal year, analysts tracked by Zacks expect GameStop to post earnings of $1.09 per share, reflecting a year-over-year contraction of 7.63%.

Full-year revenue estimates of $3.36 billion would mark a 7.33% decline from the prior year, painting a broadly negative picture for the video game retailer’s top and bottom lines.

Monday’s session added another layer of pressure, with GME shares closing at $23.90, a drop of 3.71% while broader markets advanced across the board.

The S&P 500 climbed 0.7% on the day, the Dow Jones Industrial Average rose 0.28%, and the Nasdaq gained 0.83%, leaving GameStop as a conspicuous outlier.

The single-session decline contrasts with a stronger recent trend, as GME had gained 6.11% over the past month, outpacing the S&P 500, which lost 1.21% in that same period.

The Consumer Discretionary sector, of which GameStop is a part, gained 4.8% over that month, meaning GME’s monthly performance actually tracked above its broader sector peers.

Despite that relative monthly strength, the gaming industry as a whole holds a Zacks Industry Rank of 195, placing it in the bottom 21% of more than 250 industries tracked by the firm.

Research from Zacks indicates that industries ranked in the top half consistently outperform those in the bottom half by a ratio of 2 to 1, a structural headwind for GME shareholders.

GameStop currently holds a Zacks Rank of 3, designated as a Hold, a middle-ground rating in a system that ranges from 1, Strong Buy, to 5, Strong Sell.

The firm notes that stocks assigned a Rank of 1 have delivered an average annual gain of 25% since 1988, a benchmark GME’s current standing does not reflect.

With earnings revisions increasingly influencing near-term price behavior, analysts and investors will be watching closely for any shifts in GameStop’s forecast trajectory ahead of its next report.