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In the latest trading session, Gap (GPS - Free Report) closed at $22.11, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.1%.
Shares of the clothing chain have depreciated by 5.41% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.98% and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of Gap in its upcoming release. The company is slated to reveal its earnings on May 30, 2024. In that report, analysts expect Gap to post earnings of $0.12 per share. This would mark year-over-year growth of 1100%. Alongside, our most recent consensus estimate is anticipating revenue of $3.28 billion, indicating a 0.02% downward movement from the same quarter last year.
GPS's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $14.84 billion. These results would represent year-over-year changes of -4.9% and -0.34%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gap. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, the Zacks Consensus EPS estimate has shifted 0.42% upward. At present, Gap boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Gap is presently being traded at a Forward P/E ratio of 16.3. This denotes a premium relative to the industry's average Forward P/E of 15.68.
One should further note that GPS currently holds a PEG ratio of 1.36. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.32 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Gap (GPS) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Gap (GPS - Free Report) closed at $22.11, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.1%.
Shares of the clothing chain have depreciated by 5.41% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.98% and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of Gap in its upcoming release. The company is slated to reveal its earnings on May 30, 2024. In that report, analysts expect Gap to post earnings of $0.12 per share. This would mark year-over-year growth of 1100%. Alongside, our most recent consensus estimate is anticipating revenue of $3.28 billion, indicating a 0.02% downward movement from the same quarter last year.
GPS's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $14.84 billion. These results would represent year-over-year changes of -4.9% and -0.34%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Gap. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, the Zacks Consensus EPS estimate has shifted 0.42% upward. At present, Gap boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Gap is presently being traded at a Forward P/E ratio of 16.3. This denotes a premium relative to the industry's average Forward P/E of 15.68.
One should further note that GPS currently holds a PEG ratio of 1.36. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.32 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.