Yahoo Finance Here's Why Gap (GPS) Gained But Lagged the Market Today
Gap (GPS) closed at $20.91 in the latest trading session, marking a +0.75% move from the prior day. The stock lagged the S&P 500's daily gain of 1.2%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.59%.
The clothing chain's shares have seen a decrease of 25.65% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.47% and the S&P 500's loss of 4.16%.
Market participants will be closely following the financial results of Gap in its upcoming release. The company is forecasted to report an EPS of $0.12, showcasing a 1100% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.28 billion, reflecting a 0.02% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.36 per share and revenue of $14.84 billion, indicating changes of -4.9% and -0.34%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Gap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Gap presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Gap is currently being traded at a Forward P/E ratio of 15.29. This expresses a premium compared to the average Forward P/E of 14.79 of its industry.
One should further note that GPS currently holds a PEG ratio of 1.27. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The Gap, Inc. (GPS) : Free Stock Analysis Report
