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Gap (GPS) Stock Sinks As Market Gains: What You Should Know
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Gap (GPS - Free Report) closed the most recent trading day at $22.69, moving -1.18% from the previous trading session. This change lagged the S&P 500's 0.2% gain on the day.
Heading into today, shares of the clothing chain had gained 1.15% over the past month, lagging the Retail-Wholesale sector's gain of 3.15% and the S&P 500's gain of 5.66% in that time.
Investors will be hoping for strength from GPS as it approaches its next earnings release. In that report, analysts expect GPS to post earnings of $0.51 per share. This would mark year-over-year growth of 104%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.49 billion, up 12.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.20 per share and revenue of $17.78 billion, which would represent changes of +204.27% and +28.86%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GPS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. GPS is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GPS's current valuation metrics, including its Forward P/E ratio of 10.45. Its industry sports an average Forward P/E of 11.68, so we one might conclude that GPS is trading at a discount comparatively.
It is also worth noting that GPS currently has a PEG ratio of 0.87. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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Gap (GPS) Stock Sinks As Market Gains: What You Should Know
Gap (GPS - Free Report) closed the most recent trading day at $22.69, moving -1.18% from the previous trading session. This change lagged the S&P 500's 0.2% gain on the day.
Heading into today, shares of the clothing chain had gained 1.15% over the past month, lagging the Retail-Wholesale sector's gain of 3.15% and the S&P 500's gain of 5.66% in that time.
Investors will be hoping for strength from GPS as it approaches its next earnings release. In that report, analysts expect GPS to post earnings of $0.51 per share. This would mark year-over-year growth of 104%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.49 billion, up 12.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.20 per share and revenue of $17.78 billion, which would represent changes of +204.27% and +28.86%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GPS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. GPS is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GPS's current valuation metrics, including its Forward P/E ratio of 10.45. Its industry sports an average Forward P/E of 11.68, so we one might conclude that GPS is trading at a discount comparatively.
It is also worth noting that GPS currently has a PEG ratio of 0.87. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.