The Gap, Inc. is a popular retail clothing company that operates globally, offering apparel, accessories, and personal care products under various brand names such as Gap, Banana Republic, and Old Navy. The company's financial performance is an essential indicator for investors, and fundamental analysis is one of the methods used to evaluate it.
Fundamental analysis is a method of evaluating a company's financial health by examining its financial statements, economic and industry conditions, and management.
In the case of Gap, Inc., the company's earnings have been mixed in recent years. In the fiscal year 2021, the company's revenue increased by 7%, but its net income declined by 15%. This decline in net income was due to the impact of the COVID-19 pandemic on the company's operations.
However, the company's financial performance has improved in recent quarters. In the third quarter of the fiscal year 2022, Gap, Inc. reported a net income of $233 million, up from $131 million in the same quarter of the previous year. The company's revenue also increased by 13% to $4.4 billion.
Despite the company's improving financial performance, Gap, Inc.'s Moving Average Convergence Divergence Histogram (MACD) turned negative on February 09, 2023. The MACD is a technical analysis tool that uses moving averages to identify changes in momentum and trend. When the MACD turns negative, it suggests that the stock price could decline going forward, which is a bearish signal.
According to Tickeron's A.I.dvisor, which analyzed 57 instances where the MACD turned negative, in 48 of those cases, the stock moved lower in the days that followed. This puts the odds of a downward move at 84%.
Investors should take note of the MACD signal, but it is important to remember that technical analysis tools are not always accurate predictors of stock price movements. The MACD signal should be used in conjunction with fundamental analysis to get a more comprehensive view of a company's financial health and growth potential.
In summary, Gap, Inc.'s profits performance has been inconsistent over the past few years, although it has improved recently. On February 9, 2023, the stock's MACD became negative, which is a bearish indicator and signals that the stock price may decrease moving forward. To make wise investing selections, investors should combine fundamental analysis with technical analysis tools like the MACD.
GPS saw its Momentum Indicator move below the 0 level on February 16, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 86 similar instances where the indicator turned negative. In of the 86 cases, the stock moved further down in the following days. The odds of a decline are at .
The Moving Average Convergence Divergence Histogram (MACD) for GPS turned negative on February 20, 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 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
GPS moved below its 50-day moving average on February 13, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GPS crossed bearishly below the 50-day moving average on January 24, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 65 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GPS advanced for three days, in of 294 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 236 cases where GPS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 (2.856) is normal, around the industry mean (4.013). P/E Ratio (172.182) is within average values for comparable stocks, (102.990). Projected Growth (PEG Ratio) (1.003) is also within normal values, averaging (1.333). Dividend Yield (0.032) settles around the average of (0.030) among similar stocks. P/S Ratio (0.471) is also within normal values, averaging (2.053).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GPS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Profit vs. Risk Rating rating for this company is (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 75, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of stores that retail clothing, accessories and personal care products
|ETFs / NAME
|ProShares Ultra Utilities
|American Century Mid Cap Gr Impact ETF
|Vanguard Russell 1000 Value ETF
|Xtrackers Low Beta High Yield Bond ETF
|Aptus Collared Investment Opp ETF
A.I.dvisor indicates that over the last year, GPS has been loosely correlated with DBI. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if GPS jumps, then DBI could also see price increases.