Gap closed at $21.25 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.35%.
Shares of the clothing chain witnessed a loss of 22.51% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.39% and the S&P 500's loss of 2%.
Analysts and investors alike will be keeping a close eye on the performance of Gap in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.12, marking a 1100% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.28 billion, indicating a 0.02% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.36 per share and a revenue of $14.84 billion, representing changes of -4.9% and -0.34%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gap. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Gap is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Gap's current valuation metrics, including its Forward P/E ratio of 15.73. This represents a premium compared to its industry's average Forward P/E of 14.92.
We can additionally observe that GPS currently boasts a PEG ratio of 1.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.36 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GPS in the coming trading sessions, be sure to utilize Zacks.com.
Image: Bigstock
Gap (GPS) Stock Falls Amid Market Uptick: What Investors Need to Know
Gap closed at $21.25 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.35%.
Shares of the clothing chain witnessed a loss of 22.51% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.39% and the S&P 500's loss of 2%.
Analysts and investors alike will be keeping a close eye on the performance of Gap in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.12, marking a 1100% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.28 billion, indicating a 0.02% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.36 per share and a revenue of $14.84 billion, representing changes of -4.9% and -0.34%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gap. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Gap is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Gap's current valuation metrics, including its Forward P/E ratio of 15.73. This represents a premium compared to its industry's average Forward P/E of 14.92.
We can additionally observe that GPS currently boasts a PEG ratio of 1.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.36 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GPS in the coming trading sessions, be sure to utilize Zacks.com.