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Gap (GPS, $27.38) misses Q4 revenue expectations
Gap Inc. reported lower-than-expected revenue for the fourth quarter, as same-store sales plunged at its Gap and Banana Republic stores. However, the retail company beat earnings expectations.
Gap’s diluted earnings came in at 61 cents a share with revenue of $4.4 billion for the quarter. That includes 45 cents a share for non-recurring tax benefits and 12 cents a share in impairment charges related to its Intermix business, which is under strategic review. Analysts polled by FactSet had expected 19 cents a share, on sales of $4.7 billion.
Same-store sales at its namesake stores fell -6%. amid COVID-mandated store closures and restrictions in Canada, China, Europe and Japan. But North America comparable sales were positive.
Banana Republic Global comparable sales plummeted -22%. Athleta stores had +26% rise in comparable sales, while Old Navy stores comparable sales increased +6%.
Digital sales increased +49%, representing 46% of net sales during the quarter.
For fiscal 2021, Gap is projecting earnings to be in the range of $1.20 to $1.35 per share. Analysts had been expecting earnings of $1.28 per share.
The company is expecting net sales to be up a mid- to high-teens percentage compared with 2020, assuming Covid-related effects continue in the first half of 2021, and the retailer returns to pre-pandemic level of sales in the second half of the year, the company said. Analysts predicted year-over-year revenue growth of 14.1%, according to Refinitiv poll.
GPS's RSI Oscillator ascending out of oversold territory
The RSI Indicator for GPS moved out of oversold territory on April 25, 2022. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In 19 of the 24 cases the stock moved higher. This puts the odds of a move higher at 79%.
Current price $12.53 crossed the support line at $12.29 and is trading between $12.73 resistance and $12.29 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -13% Downtrend, while the week of 05/09/22 - 05/16/22 shows a +0.12% Uptrend.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 52 of 70 cases where GPS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.
Following a +4.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where GPS advanced for three days, in 213 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
GPS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on May 10, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on GPS as a result. In 77 of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for GPS turned negative on May 10, 2022. 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 59 similar instances when the indicator turned negative. In 48 of the 59 cases the stock turned lower in the days that followed. This puts the odds of success at 81%.
GPS moved below its 50-day Moving Average on April 20, 2022 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GPS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
The Aroon Indicator for GPS entered a downward trend on April 19, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 68%. During the last month, the daily ratio of advancing to declining volumes was 1.05 to 1.
The Tickeron SMR rating for this company is 7 (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 Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously 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 (1.651) is normal, around the industry mean (7.226). P/E Ratio (18.149) is within average values for comparable stocks, (26.725). GPS's Projected Growth (PEG Ratio) (0.393) is slightly lower than the industry average of (1.229). Dividend Yield (0.042) settles around the average of (0.032) among similar stocks. P/S Ratio (0.279) is also within normal values, averaging (1.910).
The Tickeron PE Growth Rating for this company is 65 (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Price Growth Rating for this company is 87 (best 1 - 100 worst), indicating slightly worse than average price growth. GPS’s price grows at a lower 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 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GPS’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 78, placing this stock worse than average.
Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.
The average market capitalization across the Apparel/Footwear Retail Industry is 7.6B. The market cap for tickers in the group ranges from 256K to 67.2B. TJX holds the highest valuation in this group at 67.2B. The lowest valued company is DESTQ at 256K.
The average weekly price growth across all stocks in the Apparel/Footwear Retail Industry was 0.62%. For the same Industry, the average monthly price growth was -6.41%, and the average quarterly price growth was -15.39%. JILL experienced the highest price growth at 9.38%, while RENT experienced the biggest fall at -33.28%.
- 4/30/22 6:01 AM: Gap (The) (GPS, $12.42) was a top weekly gainer, with a +5.97% jump
- 4/14/22 4:49 AM: Gap (The) (GPS, $14.46) was a top weekly gainer, with a +9.05% jump
- 3/18/22 7:14 AM: Gap (The) (GPS, $15.39) was a top weekly gainer, with a +7.77% jump
The average weekly volume growth across all stocks in the Apparel/Footwear Retail Industry was -23.55%. For the same stocks of the Industry, the average monthly volume growth was -20.24% and the average quarterly volume growth was 63.2%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 52%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.31.
20 stocks in the group of tickers confirmed the negative outlook based on the Aroon indicator with average odds of 79%.
The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Bath & Body Works (NYSE:BBWI), Capri Holdings Limited (NYSE:CPRI), Gap (The) (NYSE:GPS), Nordstrom (NYSE:JWN), Foot Locker (NYSE:FL), Abercrombie & Fitch Co (NYSE:ANF), Stitch Fix (NASDAQ:SFIX).
The average market capitalization across the group is 6.8B. The market cap for tickers in the group ranges from 13.3M to 67.2B. TJX holds the highest valuation in this group at 67.2B. The lowest valued company is MOGU at 13.3M.
The average weekly price growth across all stocks in the group was 0.68%. For the same group, the average monthly price growth was -9.54%, and the average quarterly price growth was -36.13%. JILL experienced the highest price growth at 15.06%, while MOGU experienced the biggest fall at -20.66%.
- 5/14/22 4:24 AM: Express (EXPR, $3.57) was a top loser this week, declining -7.51%. Expect a Downtrend continuation
- 5/14/22 4:23 AM: Poshmark (POSH, $12.04) was a top weekly gainer, with a +7.6% jump
- 5/12/22 5:38 AM: Boot Barn Holdings (BOOT, $85.57) was a top loser this week, declining -13.28%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was -68.54%. For the same stocks of the group, the average monthly volume growth was -48.34% and the average quarterly volume growth was -55.9%
- 4/5/22 5:32 AM: The volume for Secoo Holding stock increased for one day, resulting in a record-breaking daily growth of 215% of the 65-Day Volume Moving Average
- 3/30/22 5:28 AM: The volume for Secoo Holding stock increased for a consecutive 5 days, with an average daily gain of 433%
- 3/29/22 5:12 AM: The volume for Secoo Holding stock increased for four consecutive days, resulting in a record-breaking daily growth of 493% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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