Gap (GPS) Stock Moves -1.25%: what you need to know

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gap (GPS) closed the last day of trading at $15.86, down 1.25% from the previous trading session. This change was narrower than the S&P 500’s 1.89% loss on the day. Meanwhile, the Dow lost 1.3% and the Nasdaq, a technology-heavy index, lost 0.17%.

As of today, shares of the clothing chain have lost 7.06% over the past month. At the same time, the Retail-Wholesale sector lost 6.12%, while the S&P 500 lost 1.79%.

Wall Street will be looking for positivity from Gap as its next earnings report date nears. In this report, analysts expect Gap to post earnings of -$0.12 per share. This would mark a year-over-year decline of 142.86%. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $4.53 billion, up 2.46% from the year-ago period.

Zacks consensus estimates for the full year of GPS call for earnings of $1.35 per share and revenue of $16.69 billion. These results would represent year-over-year variations of +163.98% and +20.93%, respectively.

Investors might also notice recent changes in analyst estimates for Gap. These revisions help show the ever-changing nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated to short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has risen 0.09% . Gap is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Gap has a Forward P/E ratio of 11.9 at this time. This valuation marks a premium to the sector’s average Forward P/E of 11.73.

Additionally, it is worth mentioning that GPS has a PEG ratio of 0.99. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The Retail – Apparel & Footwear industry currently had an average PEG ratio of 0.8 as of yesterday’s close.

The Retail – Clothing and Footwear industry is part of the Retail – Wholesale sector. This industry currently has a Zacks industry ranking of 96, which places it in the top 38% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to track all of these stock movement metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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