Yahoo Finance Gap (GPS) Dips More Than Broader Market: What You Should Know
Gap (GPS) closed the most recent trading day at $23.86, moving -0.71% from the previous trading session. This move lagged the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 0.71%.
Shares of the clothing chain have appreciated by 6.71% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.53%.
Market participants will be closely following the financial results of Gap in its upcoming release. The company is forecasted to report an EPS of $0.41, showcasing a 20.59% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.63 billion, indicating a 2.43% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.74 per share and a revenue of $14.92 billion, indicating changes of +21.68% and +0.22%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gap. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 26.38% higher within the past month. Currently, Gap is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Gap currently has a Forward P/E ratio of 13.82. Its industry sports an average Forward P/E of 15.35, so one might conclude that Gap is trading at a discount comparatively.
Meanwhile, GPS's PEG ratio is currently 4.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 2.27.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The Gap, Inc. (GPS): Free Stock Analysis Report
