Gap (GPS, $13.19 ) teams up with Kanye West's fashion firm
On Friday, Gap Inc. unveiled a clothing and marketing collaboration with rapper/singer Kanye West.
The retail company is tying up with West’s fashion company Yeezy, for a new clothing line called Yeezy Gap. Yeezy was recently valued at $2.9 billion.
West will receive loyalty payments and "potential equity' related to sales targets of the brand over its ten-year timeframe, according to Gap. Yeezy Gap will be available in stores next year.
"We are excited to welcome Kanye back to the Gap family as a creative visionary, building on the aesthetic and success of his YEEZY brand and together defining a next-level retail partnership," said Mark Breitbard, Global Head of Gap Brand.
Technical Analysis (Indicators) for GAP
Bearish Trend Analysis
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 36 of 50 cases where GPS's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 72%.
Following a 3-day Decline, the ticker is projected to fall further. Considering data from situations where GPS declined for three days, in 203 of 289 cases, the price rose further within the following month. The odds of a continued Downtrend are 70%.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 27 of 38 cases where GPS's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 71%.
Bullish Trend Analysis
The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 47 of 66 cases where GPS's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 71%.
The Momentum Indicator exceeded the 0 level on June 25, 2020. Traders may consider buying the ticker or exploring call options. In 63 of 87 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 72%.
The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on May 26, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 14 of 21 similar cases where GPS's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 67%.
The Aroon Indicator entered an Uptrend today. In 127 of 189 similar cases where GPS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 67%.
GAP sees its Stochastic Oscillator recovers from oversold territory
On December 24, 2024, the Stochastic Oscillator for GAP moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 65 instances where the indicator left the oversold zone. In of the 65 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
GAP moved above its 50-day moving average on November 21, 2024 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for GAP moved above the 200-day moving average on December 17, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GAP advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GAP moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 16, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on GAP as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GAP turned negative on December 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GAP broke above its upper Bollinger Band on November 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.922) is normal, around the industry mean (3.964). P/E Ratio (20.336) is within average values for comparable stocks, (110.742). Projected Growth (PEG Ratio) (1.003) is also within normal values, averaging (1.444). Dividend Yield (0.022) settles around the average of (0.028) among similar stocks. P/S Ratio (0.688) is also within normal values, averaging (1.139).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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General Information
an operator of stores that retail clothing, accessories and personal care products
Industry ApparelFootwearRetail