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Gap (GPS) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Gap (GPS - Free Report) closed at $21.11, marking a -1.03% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.93%.
The clothing chain's shares have seen a decrease of 12.76% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26%.
The investment community will be paying close attention to the earnings performance of Gap in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 20.59% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.63 billion, up 2.21% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.75 per share and revenue of $14.92 billion. These totals would mark changes of +22.38% and +0.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Gap. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.74% higher. Gap is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Gap is presently being traded at a Forward P/E ratio of 12.2. This expresses a discount compared to the average Forward P/E of 14.48 of its industry.
Investors should also note that GPS has a PEG ratio of 3.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.9 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Gap (GPS) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Gap (GPS - Free Report) closed at $21.11, marking a -1.03% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.93%.
The clothing chain's shares have seen a decrease of 12.76% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26%.
The investment community will be paying close attention to the earnings performance of Gap in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 20.59% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.63 billion, up 2.21% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.75 per share and revenue of $14.92 billion. These totals would mark changes of +22.38% and +0.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Gap. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.74% higher. Gap is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Gap is presently being traded at a Forward P/E ratio of 12.2. This expresses a discount compared to the average Forward P/E of 14.48 of its industry.
Investors should also note that GPS has a PEG ratio of 3.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.9 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.