|Bid||26.31 x 800|
|Ask||26.36 x 1300|
|Day's Range||25.65 - 26.54|
|52 Week Range||5.26 - 26.54|
|Beta (5Y Monthly)||1.63|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 24, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 06, 2021|
|1y Target Est||22.65|
Shares of Gap Inc (NYSE: GPS) look attractive at current levels after underperforming the S&P 500 index by 50% over the past three years, according to JPMorgan.The Gap Analyst: Matthew Boss upgraded Gap's stock from Neutral to Overweight with a price target lifted from $22 to $30.The Gap Thesis: Gap's Old Navy brand is standing out during the COVID-19 pandemic as it offers consumers a good value proposition on-par with off-price retailers, Boss said in a note. The brand has seen market share gains across key categories like denim and active as consumers are prioritizing value. Encouragingly, the brand faces an opportunity to win even more share from recent bankruptcies and eventual door closures.See Also: Josh Brown Predicts Year-End Market Melt-Up, Bets On Reopening StocksMeanwhile, management's own "Power Plan 2023" strategy could prove to be conservative. The company is targeting a 10% EBIT margin target by fiscal 2023 and assumes Old Navy and Athleta account for around 70%. The math behind these assumptions assumes roughly break-even EBIT margins at Gap and Banana Republic, mid-teens EBIT margins at Old Navy (consistent with current levels), and high-teens EBIT margins at Athleta.As such, Boss said buying the stock today implies investors are purchasing an "embedded call option" on the core Gap brand that could benefit from near-term catalysts. Most notably, the promotion with Kanye West for the YZY Gap launch in fiscal 2021 could accelerate adoption. This bullish outlook is further justified if a COVID-19 vaccine helps generate a rebound in workwear apparel.GPS Price Action: Shares of Gap were trading higher by more than 7.7% at $26.27.Photo credit: bargainmoose, FlickrLatest Ratings for GPS DateFirmActionFromTo Nov 2020JP MorganUpgradesNeutralOverweight Nov 2020Morgan StanleyMaintainsEqual-Weight Oct 2020Morgan StanleyMaintainsEqual-Weight View More Analyst Ratings for GPS View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Pharma Sector Did Its Job With COVID-19 Vaccine: Barclays Analyst * BofA Upgrades United Rentals, Says COVID Vaccine A Potential 'Cure' For Industry(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of Gap jumped Monday after analysts at J.P. Morgan upgraded the apparel retailer's shares to overweight from neutral ahead of its third-quarter earnings report set for Tuesday. "Looking forward, we see an embedded call option on Gap/Banana Republic with zero value attributed to the two brands today," analyst Matthew Boss said. Boss says that the San Francisco company has underperformed the S&P 500 by 50% over the past three years, bolstering J.P. Morgan's potential upside view.
Gap (NYSE: GPS) releases its next round of earnings this Tuesday, November 24. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.Net Income, Earnings, And Earnings Per Share Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.Earnings And Revenue Gap earnings will be near $0.31 per share on sales of $3.82 billion, according to analysts. In the same quarter last year, Gap reported EPS of $0.53 on revenue of $4.00 billion.What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter? Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.View more earnings on GPSThe Wall Street consensus estimate for earnings would represent a 41.51% decrease for the company. Revenue would have fallen 4.45% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019 EPS Estimate -0.41 -0.41 0.41 0.51 EPS Actual -0.01 -2.51 0.58 0.53 Revenue Estimate 2.91 B 2.57 B 4.55 B 3.96 B Revenue Actual 3.27 B 2.11 B 4.67 B 4.00 B Stock Performance Shares of Gap were trading at $24.38 as of November 20. Over the last 52-week period, shares are up 51.82%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.Do not be surprised to see the stock move on comments made during its conference call. Gap is scheduled to hold the call at 17:00:00 ET and can be accessed here.See more from Benzinga * Click here for options trades from Benzinga * Stocks That Hit 52-Week Highs On Monday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.