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Gap (GPS) Stock Sinks As Market Gains: What You Should Know
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Gap (GPS - Free Report) closed at $15.34 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the clothing chain had lost 9.1% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.81% and the S&P 500's loss of 4.02% in that time.
Gap will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. In that report, analysts expect Gap to post earnings of -$0.12 per share. This would mark a year-over-year decline of 142.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.53 billion, up 2.46% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Gap. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 10.1% lower. Gap is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Gap's current valuation metrics, including its Forward P/E ratio of 8.44. This represents a discount compared to its industry's average Forward P/E of 11.17.
Investors should also note that GPS has a PEG ratio of 0.7 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 Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.71 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 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Gap (GPS) Stock Sinks As Market Gains: What You Should Know
Gap (GPS - Free Report) closed at $15.34 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the clothing chain had lost 9.1% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.81% and the S&P 500's loss of 4.02% in that time.
Gap will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. In that report, analysts expect Gap to post earnings of -$0.12 per share. This would mark a year-over-year decline of 142.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.53 billion, up 2.46% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Gap. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 10.1% lower. Gap is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Gap's current valuation metrics, including its Forward P/E ratio of 8.44. This represents a discount compared to its industry's average Forward P/E of 11.17.
Investors should also note that GPS has a PEG ratio of 0.7 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 Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.71 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 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.