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Gap (GPS) Beats Stock Market Upswing: What Investors Need to Know
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The most recent trading session ended with Gap (GPS - Free Report) standing at $23.44, reflecting a +0.73% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the clothing chain had lost 8.64% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.31% and the S&P 500's gain of 4.08% in that time.
The investment community will be paying close attention to the earnings performance of Gap in its upcoming release. On that day, Gap is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 20.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.63 billion, up 2.43% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and a revenue of $14.92 billion, representing changes of +21.68% and +0.22%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Gap. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.75% higher. Gap currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Gap currently has a Forward P/E ratio of 13.39. For comparison, its industry has an average Forward P/E of 14.89, which means Gap is trading at a discount to the group.
Meanwhile, GPS's PEG ratio is currently 3.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 35% echelons of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Gap (GPS) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Gap (GPS - Free Report) standing at $23.44, reflecting a +0.73% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the clothing chain had lost 8.64% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.31% and the S&P 500's gain of 4.08% in that time.
The investment community will be paying close attention to the earnings performance of Gap in its upcoming release. On that day, Gap is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 20.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.63 billion, up 2.43% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and a revenue of $14.92 billion, representing changes of +21.68% and +0.22%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Gap. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.75% higher. Gap currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Gap currently has a Forward P/E ratio of 13.39. For comparison, its industry has an average Forward P/E of 14.89, which means Gap is trading at a discount to the group.
Meanwhile, GPS's PEG ratio is currently 3.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 35% echelons of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.