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Why Gap (GPS) Dipped More Than Broader Market Today
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Gap (GPS - Free Report) closed at $22.65 in the latest trading session, marking a -0.79% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.93%, and the technology-centric Nasdaq decreased by 0.81%.
The clothing chain's stock has dropped by 9.4% in the past month, falling short of the Retail-Wholesale sector's loss of 0.03% and the S&P 500's gain of 1.08%.
Investors will be eagerly watching for the performance of Gap in its upcoming earnings disclosure. In that report, analysts expect Gap to post earnings of $0.41 per share. This would mark year-over-year growth of 20.59%. Our most recent consensus estimate is calling for quarterly revenue of $3.63 billion, up 2.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.74 per share and a revenue of $14.92 billion, demonstrating changes of +21.68% and +0.18%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Gap. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Gap is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Gap is holding a Forward P/E ratio of 13.13. This denotes a discount relative to the industry's average Forward P/E of 14.75.
It is also worth noting that GPS currently has a PEG ratio of 3.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 2.06.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 45% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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Why Gap (GPS) Dipped More Than Broader Market Today
Gap (GPS - Free Report) closed at $22.65 in the latest trading session, marking a -0.79% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.93%, and the technology-centric Nasdaq decreased by 0.81%.
The clothing chain's stock has dropped by 9.4% in the past month, falling short of the Retail-Wholesale sector's loss of 0.03% and the S&P 500's gain of 1.08%.
Investors will be eagerly watching for the performance of Gap in its upcoming earnings disclosure. In that report, analysts expect Gap to post earnings of $0.41 per share. This would mark year-over-year growth of 20.59%. Our most recent consensus estimate is calling for quarterly revenue of $3.63 billion, up 2.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.74 per share and a revenue of $14.92 billion, demonstrating changes of +21.68% and +0.18%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Gap. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Gap is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Gap is holding a Forward P/E ratio of 13.13. This denotes a discount relative to the industry's average Forward P/E of 14.75.
It is also worth noting that GPS currently has a PEG ratio of 3.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 2.06.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 45% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.