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Earnings Estimates Moving Higher for Gap (GPS): Time to Buy?
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Gap (GPS - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this clothing chain is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Gap, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.17 per share, which is a change of +122.67% from the year-ago reported number.
The Zacks Consensus Estimate for Gap has increased 6.08% over the last 30 days, as three estimates have gone higher while two have gone lower.
Current-Year Estimate Revisions
The company is expected to earn $0.93 per share for the full year, which represents a change of +332.5% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, six estimates have moved up for Gap versus no negative revisions. This has pushed the consensus estimate 32.63% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Gap earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Gap because of its solid estimate revisions, as evident from the stock's 55.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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Earnings Estimates Moving Higher for Gap (GPS): Time to Buy?
Gap (GPS - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this clothing chain is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Gap, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.17 per share, which is a change of +122.67% from the year-ago reported number.
The Zacks Consensus Estimate for Gap has increased 6.08% over the last 30 days, as three estimates have gone higher while two have gone lower.
Current-Year Estimate Revisions
The company is expected to earn $0.93 per share for the full year, which represents a change of +332.5% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, six estimates have moved up for Gap versus no negative revisions. This has pushed the consensus estimate 32.63% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Gap earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Gap because of its solid estimate revisions, as evident from the stock's 55.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.