For today’s bulletin, we take a look at The Gap $GPS and provide a link to download a FREE STOCK REPORT on the company
VALUATION WATCH: Overvalued stocks now make up 61.31% of our stocks assigned a valuation and 22.74% of those equities are calculated to be overvalued by 20% or more. Fourteen sectors are calculated to be overvalued.
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The Gap, Inc. (GPS) is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. The company designs virtually all of its products, which in turn are manufactured by independent sources, and sells them under its brand names.
Retailers like the Gap have been beat up over the past few years. Like almost all brick and mortar stores, they have been damaged by the “Amazon effect” as more shoppers avoid malls and such and do their shopping from the comfort and convenience of their homes.
The company’s last quarterly results were not bad, they hit the analyst EPS estimate of $0.51/share right on the nose. However, long-term the company has suffered since the Bush Recession of 2008. They are nowhere near where they used to be, with their gross margin down @four percentage points since 2009.The company continues to garner decent performance from their bargain store–Old Navy–but suffers at the higher end–Banana Republic.
When analysts look at the company’s ROI, the Gap’s score of 13.39 is markedly better over the past twelve months than the industry average of 7.11. The average rating on this stock from analysts is a HOLD. Currently the shares are trading right in the middle of the high-low range. Their 52-week high is $30.14/share and the low is $16.32/share.
The Gap does pay a dividend of $0.23/share, so that is a nice bonus, but the shares went ex-dividend on April 3rd and the payment is scheduled for April 26th. They report earnings again in May, so that will be the next opportunity to see if things are finally turning around for the better. Currently, analysts are looking at a target price of $25.12/share with the EPS expected to come in at $0.29/share. We have a one-month forecast target price of $24.01/share and a one-year forecast target of $25.33.
Below is today’s data on The Gap, Inc. (GPS):
VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from HOLD to BUY for The Gap on 2017-04-17. Based on the information we have gathered and our resulting research, we feel that The Gap has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.
You can download a free copy of detailed report on The Gap, Inc. (GPS) from the link below.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 24.01 | 0.50% |
| 3-Month | 24.38 | 2.04% |
| 6-Month | 24.25 | 1.52% |
| 1-Year | 25.33 | 6.03% |
| 2-Year | 27.47 | 14.98% |
| 3-Year | 27.66 | 15.79% |
| Valuation & Rankings | |||
| Valuation | 6.99% overvalued | Valuation Rank(?) | 48 |
| 1-M Forecast Return | 0.50% | 1-M Forecast Return Rank | 84 |
| 12-M Return | 0.04% | Momentum Rank(?) | 34 |
| Sharpe Ratio | -0.04 | Sharpe Ratio Rank(?) | 43 |
| 5-Y Avg Annual Return | -1.47% | 5-Y Avg Annual Rtn Rank | 42 |
| Volatility | 33.53% | Volatility Rank(?) | 48 |
| Expected EPS Growth | -0.66% | EPS Growth Rank(?) | 20 |
| Market Cap (billions) | 10.12 | Size Rank | 89 |
| Trailing P/E Ratio | 11.89 | Trailing P/E Rank(?) | 88 |
| Forward P/E Ratio | 11.96 | Forward P/E Ratio Rank | 76 |
| PEG Ratio | n/a | PEG Ratio Rank | n/a |
| Price/Sales | 0.65 | Price/Sales Rank(?) | 79 |
| Market/Book | 3.48 | Market/Book Rank(?) | 36 |
| Beta | 0.86 | Beta Rank | 48 |
| Alpha | -0.31 | Alpha Rank | 14 |
DOWNLOAD A FREE SAMPLE OF OUR GAP (GPS) REPORT BY CLICKING HERE
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