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Gap (GPS) Suffers a Larger Drop Than the General Market: Key Insights
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The latest trading session saw Gap (GPS - Free Report) ending at $23.52, denoting a -0.68% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the clothing chain had gained 8.13% in the past month. In that same time, the Retail-Wholesale sector gained 1.7%, while the S&P 500 gained 1.93%.
The upcoming earnings release of Gap will be of great interest to investors. The company's earnings report is expected on August 29, 2024. On that day, Gap is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 23.53%. At the same time, our most recent consensus estimate is projecting a revenue of $3.62 billion, reflecting a 2.16% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $14.92 billion, which would represent changes of +24.48% and +0.22%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Gap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.04% higher. Gap is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Gap is presently being traded at a Forward P/E ratio of 13.27. For comparison, its industry has an average Forward P/E of 16.06, which means Gap is trading at a discount to the group.
Investors should also note that GPS has a PEG ratio of 1.42 right now. 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 Retail - Apparel and Shoes was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 32% 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.
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) Suffers a Larger Drop Than the General Market: Key Insights
The latest trading session saw Gap (GPS - Free Report) ending at $23.52, denoting a -0.68% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the clothing chain had gained 8.13% in the past month. In that same time, the Retail-Wholesale sector gained 1.7%, while the S&P 500 gained 1.93%.
The upcoming earnings release of Gap will be of great interest to investors. The company's earnings report is expected on August 29, 2024. On that day, Gap is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 23.53%. At the same time, our most recent consensus estimate is projecting a revenue of $3.62 billion, reflecting a 2.16% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $14.92 billion, which would represent changes of +24.48% and +0.22%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Gap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.04% higher. Gap is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Gap is presently being traded at a Forward P/E ratio of 13.27. For comparison, its industry has an average Forward P/E of 16.06, which means Gap is trading at a discount to the group.
Investors should also note that GPS has a PEG ratio of 1.42 right now. 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 Retail - Apparel and Shoes was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 32% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.