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Gap (GPS) Stock Moves -1.25%: What You Should Know

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Gap (GPS) closed the most recent trading day at $15.86, moving -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 tech-heavy index, lost 0.17%.

Coming into today, shares of the clothing chain had lost 7.06% in the past month. In that 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 it approaches its next earnings report date. 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.

GPS's full-year Zacks Consensus Estimates are calling for earnings of $1.35 per share and revenue of $16.69 billion. These results would represent year-over-year changes of +163.98% and +20.93%, respectively.

Investors might also notice recent changes to analyst estimates for Gap. These revisions help to show the ever-changing nature of near-term business trends. As a result, 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 with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. 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 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.73.

Also, we should mention that GPS has a PEG ratio of 0.99. 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 0.8 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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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