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8/12/24 - $gps - Not on sale at $22, buy teens8/12/24 :: VROCKSTAR :: NYSE:GPS Not on sale at $22, buy teens - great brand, turned it around, good product for "recession" - google trends and stonk seem to correlate well, clearly a lot of the benefits of results since 2023 have been priced in trends.google.com - consider 30% of the capital stack is debt (~12 bn enterprise value vs. 8 bn cap). so to get a true PE let's adjust stock at $22 up by (12/8) or 50%. $22 x 1.5 = $33 - multiple on EPS is likely a function of '25 vs. '24 growth (b/c the '24 growth vs. '23 is already in the stock). '25 YoY EPS is +10% vs. '24 (consensus). let's round up and give the benefit of $2. so 33/2 = 16.5x - 16.5x isn't objective "cheap", but if you continue to think the results will surprise to the upside, you're probably closer to a $25 stock into YE. Not amazing risk/reward in my book, especially since i like to have larger position sizes and can't justify taking this to 2-5% at this pt. - i'd prefer to be a buyer in the teens if the stock price gets there. I've set a target at $18 to take another look, if/ does get there. so far the consumer brand(s) i prefer continue to be NASDAQ:CELH > $LULU. - gl to the holders, LMK if i've missed anything obvious. of course would like to see it thru a different lens (always!) V
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by VROCKSTAR
Gap Stock Surges 26.87% After Revenue BeatGap shares ( NYSE:GPS ) surged more than 27% in Friday's trading session after the clothing and accessories retailer posted a better-than-expected quarterly earnings report and raised its full-year guidance. Comparable store sales in the quarter rose 3% from a year earlier, driven by each of Gap's four brands posting positive same store sales in the period. New CEO Richard Dickson has led an ambitious turnaround plan that has seen the retailer work on improving its operational efficiency and repositioning the company’s brands. Gap's ( NYSE:GPS ) comparable store sales increased 3% from the year-ago period, showing a significant improvement from a 4% decline in last year’s corresponding quarter. The turnaround was driven by positive same store sales growth in each of the retailer's four brands, which include Old Navy, Gap, Banana Republic, and Athleta. Looking ahead, the company raised its full-year guidance, saying it now expects net sales to be up slightly, an improvement on its prior forecast where it projected flat annual sales. It also lifted its full-year operating income outlook to the mid-40% growth range, significantly higher than its earlier forecast of growth in the low-to-mid teens. Gap ( NYSE:GPS ) CEO Richard Dickson told CNBC in an interview following the quarterly results that the plan is working and resonating with investors. Since finding a bottom in May last year, Gap shares have trended higher, with gains accelerating after the 50-day moving average (MA) crossed above the 200-day MA in early October to form a golden cross pattern. Leading into the retailer’s quarterly results, the stock has rallied towards the 50-day MA after a period of recent consolidation, indicating bullish expectations by market participants. Amid the stock’s projected earnings-driven surge on Friday, investors should closely monitor the $28.50 level, an area where the price would likely run into overhead resistance from its March 2024 high. Gap's ( NYSE:GPS ) upgraded outlook gives Wall Street fresh proof that CEO Richard Dickson's turnaround strategy - to introduce trendier styles across its brands and ramp up marketing efforts to attract picky shoppers - is paying off less than a year after he joined the struggling mall retailer from Mattel. The stock experience massive surged in price after a "Golden Cross" pattern exhibited since the last week of September, 2023 surging through to New Highs
GLong
by DEXWireNews
The Anti: A Super Powerful 1:1 SetupIn this video, I discuss The Anti a trade first mentioned by Linda Raschke in her 1996 book Street Smarts. Her version used a Stoch indicator but, I prefer a modified MACD indicator. To take this setup, you first need an indication of market reversal. In our case that will be climatic activity. So this trade has 4 parts: Climatic activity or other indication of possible market reversal First leg MACD or Stoch slow line change of trend MACD or Stoch fast line hooking back into the slow line (against the trend)
GEducation
by JoeRodTrades
3
Gap Inc. Steers Towards Success: A Tale of Turnaround and TriumpIn a retail landscape fraught with challenges, Gap Inc., ( NYSE:GPS ) emerges as a beacon of hope, signaling a turnaround in progress. The apparel giant's fourth-quarter earnings report has sent ripples of optimism through the market, with shares soaring on the back of stellar performance and promising outlook. Under the stewardship of Chief Executive Richard Dickson, Gap Inc., ( NYSE:GPS ) has embarked on a transformative journey, seeking to redefine its identity and reignite growth amidst a backdrop of industry upheaval. Dickson's strategic vision and decisive leadership have been instrumental in steering the company towards greener pastures, marking a stark departure from years of managerial instability and operational setbacks. The latest earnings release paints a picture of resilience and resurgence, with Gap ( NYSE:GPS ) exceeding analyst expectations on multiple fronts. Earnings per share, excluding certain items, surged to 49 cents, more than doubling the consensus estimate. Moreover, the company delivered robust revenue and comparable sales figures, underscoring the efficacy of its turnaround initiatives. Central to Gap's resurgence strategy is a concerted focus on brand revitalization and customer engagement. Investments in marketing across its portfolio of brands, including Gap, Old Navy, Banana Republic, and Athleta, have yielded promising results, breathing new life into once-flagging segments of the business. Of particular note is the remarkable turnaround at Old Navy, Gap's largest brand, which witnessed a consecutive 2% increase in comparable sales, signaling a reversal of fortunes after six quarters of decline. Similarly, the Gap brand saw a commendable 4% rise in same-store sales, surpassing analyst expectations and marking its most significant uptick in over a year. While progress has been palpable across key brands, challenges persist in Gap's smaller segments. Banana Republic, though showing signs of improvement with a 4% decline in same-store sales compared to an 8% drop in the prior quarter, continues to grapple with the complexities of its brand elevation efforts. Nevertheless, optimism abounds as the company remains steadfast in its commitment to driving positive change. Athleta, Gap's ( NYSE:GPS ) foray into the activewear market, faces its own set of hurdles, with a 10% drop in comparable sales attributed to product marketing and experience missteps. Despite these challenges, Dickson remains bullish on Athleta's prospects, projecting a rebound in comparable sales by the latter half of 2024. Technical Standpoint With a moderate Relative Strength Index (RSI) of 54.18 NYSE:GPS is trading above its 200-day Moving Average with the stock on the verge of a bullish breakout forming a Symmetrical Triangle chart pattern. As Gap Inc. ( NYSE:GPS ) navigates the torrents of the retail landscape, its journey toward sustainable growth serves as a testament to resilience, adaptability, and unwavering determination. With a seasoned leader at the helm and a renewed sense of purpose, Gap ( NYSE:GPS ) stands poised to write the next chapter of its storied legacy—one defined by triumph over adversity and a steadfast commitment to delivering value to shareholders and customers alike.
GLong
by DEXWireNews
GAP is ready for a series of PRICE GROWTH!GAP is registering significant net positive volume this past few weeks -- in anticipation of the company's turnaround story in terms of bottomline which it did after the company posted a surprise profit due to business re-organization after last Month's earnings result. The stock is sitting at a strong solid support at 8-9 area -- a 1.0 FIB level area where buyers converge. Expect price to bounce from this range. Weekly histogram has created higher lows conveying incoming reversal to the upside. Spotted at 8.5 TAYOR. Safeguard capital always ---------------------------------- FUNDAMENTAL NEWS: Reference Barrons. Gap’s Surprise Profit Gives Stock a Boost By Sabrina EscobarFollow May 25, 2023 5:09 pm ET Gap’s same-store sales fell by 3%. Gap stock surged on Thursday after the company posted a surprise profit. The apparel retailer posted adjusted earnings of one cent a share in the quarter, better than consensus estimates for a loss of 16 cents a share, according to FactSet. While revenue of $3.28 billion declined 6% compared with the previous quarter, it was in line with the company’s and the Street’s projections. Same-store sales fell by 3%, more than forecasts for a 2.4% decline. For the second quarter, Gap (ticker: GPS) is expecting net sales could decrease in the mid- to high-single digit range from the year-ago quarter’s $3.86 billion. Current estimates have Gap’s second-quarter sales down by roughly 5% year-over-year. For fiscal 2023, net sales could decrease in the low to mid-single digit range. Despite the decrease in sales, Gap believes margins will grow in both the second quarter and the remainder of fiscal 2023. First-quarter adjusted gross margins increased 5.7 percentage points compared with the previous year. Gap stock jumped 16% to $8.61 in after-hours trading. The company is currently reorganizing its business to improve profitability. Earlier this year, it announced it was cutting 1,800 corporate jobs in addition to 500 jobs culled in September. “While the macro and consumer environment remain uncertain, Q1 underscores our ability to deliver improvements to the business including share gains at Old Navy and Gap Brand, adjusted operating margin expansion, reduction in inventory, and strength in our balance sheet,” said interim CEO Bob Martin in a statement.
GLong
by JSAL
$GPS Potential return to 6-12$ range based on Monthly chartNYSE:GPS Potential return to 6-12$ range based on Monthly chart Recent spike on Monthly chart indicates a potential strong upcoming reversal. Potential return to the trading range of 6$ to 12$. Long term Debt is too high, and Executives and top stakeholders are selling millions of shares at recently spiked prices. Plus insiders with Discounted Stock Purchase Plan have a unique lifetime opportunity to buy shares around 7$ (6 month low), and sell at current market price, which is still 190% gains for immediate exercise. Hence above favours the Short position.
GShort
by aniHotmail
7
Gap Reports Vastly Improved Q3 Sales And Earnings ResultsThe Gap’s new president, Richard Dickson, 52, has many challenges to overcome. His first meeting with analysts and investors after reporting 3rd quarter 2023 results shows that he has a clear understanding of the Gap’s problems and opportunities. In the three months that he has been on the job, he has closed many unprofitable Gap stores, invigorated Old Navy, and started to reposition Banana Republic and Athleta. In the third quarter, his efforts have already made an impact on a few key metrics. The company improved both gross margin and operating margins and, most importantly, he is reviving the spirit of the associates and creating a culture of success. Key Highlights Net sales were $3.8 billion, a decrease of 7% from last year’s 3rd quarter. The company indicated that those sales results included about 2 percentage points of negative impact from the sale of Gap China. Diving more deeply into this, comparable sales were down 2%. Store sales decreased 6% compared to last year. The company ended with 3,533 stores at the end of the quarter compared to last year’s third quarter of 3352 stores. The stores are in 40 countries; 2,598 of them (compared to 2,685 last year) are company operated. Online sales decreased 8% compared to last year and represented 38% of total net sales. A gross margin of 41.3% showed an increase of 390 basis points versus last year’s gross margin and increased 260 basis points versus last year’s adjusted gross margin. Last year’s adjusted gross margin excluded $53 million in impairment charges related to the decision to discontinue the Yeezy business. 1. The company ended the quarter with cash and cash equivalents of $1.4 billion, an increase of 99% from the prior year. 2. Year to date, net cash from operating activities was $832 million. 3. Ending inventory was $2.3 billion, down 22% compared to last year. 4. Year to date, capital expenditures were $288 million. 5. The Gap paid a third quarter dividend of $0.15 per share, totaling $55 million. 6. The effective tax rate was 15% and includes the benefit of foreign operations. 7. Reported net income was $218 million while reported diluted earnings per share were $0.58. 8. Adjusted net income was $221 million. Excluding restructuring costs, diluted earnings per share were $0.59. 9. The board of directors approved another $0.15 per share dividend for the fourth quarter of 2023. Technical Analysist Price Momentum GPS is trading near the top of its 52-week range and above its 200-day simple moving average. What does this mean? Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
GLong
by DEXWireNews
$GPS Breaks Double Top Your analysis of NYSE:GPS (Gap Inc.) highlights a nuanced approach to trading based on technical patterns and clearly defined risk management strategies. Let's break down the key elements of your strategy: 1. **Bottoming Pattern with Bullish to Bearish Reversal**: Initially, Gap Inc. exhibited a bottoming pattern, which usually indicates the potential end of a downtrend and the start of an upward movement. However, it seems there's been a reversal from bullish to bearish, suggesting that the anticipated upward trend might not materialize as expected. 2. **Breaks Double Top**: The break of a Double Top pattern is significant. A Double Top is a bearish reversal pattern characterized by two peaks at approximately the same level. A break above this pattern can sometimes signal a potential change in trend, but it's often approached with caution as it can be a false breakout. 3. **Strategy for Entering the Trade**: You're planning to enter a long position if NYSE:GPS pulls back to $15.49. This price point likely serves as a key level based on your analysis, where the risk-reward ratio is favorable. 4. **Risk Management with Stop Loss**: You've set a clear stop-loss condition: if NYSE:GPS closes below $15.49 on a weekly basis, you plan to exit the trade. This strategy is crucial for managing risk and protecting against larger losses if the trade doesn't go as expected. 5. **Philosophy on Trade Management**: Your statement, "Only way to manage a trade is to be in a trade," reflects a hands-on approach to trading. It emphasizes the importance of active engagement and decision-making based on how the market unfolds. In summary, your approach to trading NYSE:GPS involves waiting for a specific entry point, setting a clear stop-loss level, and being prepared to actively manage the trade based on its performance. This methodical approach is key in balancing potential rewards with the risks involved in trading. Remember, while technical analysis can be a powerful tool, staying informed about the company's fundamentals and broader market conditions is also essential.
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by AlgoTradeAlert
Why Is Gap (NYSE: GPS) Stock Up Today?The Gap (NYSE:GPS) jumped 14.9% in the morning session after the company reported third quarter results that blew past analysts' revenue and EPS expectations, although its revenue declined in absolute terms. These beats were driven by better-than-expected same-store sales performance (analysts forecasted a 7% decline, and Gap posted a 2% decline). In the earnings release, management called out market share gains in the competitive casual apparel space. We were also excited its gross margin and free cash flow outperformed Wall Street's estimates - many were expecting Gap to post negative free cash flow. Management noted that rigor around expenses "has put the company on stronger financial footing and is enabling us to focus on reinvigorating our portfolio of brands, strengthening our operating platform, and reviving our culture for success." As a reminder, as a new CEO at the helm. Richard Dickson assumed the role in August 2023, and this is a good start for the new leadership of a company that has had its fair share of troubles in the last few years. Zooming out, we think this was an solid quarter amid low expectations that should please shareholders. Price Momentum GPS is trading near the top of its 52-week range and above its 200-day simple moving average. What does this mean? Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
GLong
by DEXWireNews
Gap Inc's Meteoric Rise: Unpacking the 44% Surge in Just 3 MonthGap Inc (NYSE:GPS), a prominent player in the Retail - Cyclical industry, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $4.87 billion, with a stock price of $13.17. Over the past week, the stock has gained 7.61%, and over the past three months, it has seen a remarkable 44.08% gain. According to the GF Value, the stock is currently fairly valued at $13.83, a significant increase from its undervalued status three months ago when the GF Value was $15.25. Company Overview Gap Inc is a renowned retailer of apparel, accessories, and personal-care products under various brands including Gap, Old Navy, Banana Republic, and Athleta. Old Navy is the company's most profitable brand, generating more than half of Gap's sales. The company operates approximately 2,600 stores in North America, Europe, and Asia, and franchises about 850 more in various regions. Gap also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Founded in 1969, Gap is based in San Francisco. Profitability Analysis Gap Inc's Profitability Rank stands at 7/10, indicating a relatively high level of profitability. The company's Operating Margin is 1.67%, better than 38.33% of companies in the industry. Its ROE is 4.67%, better than 46.24% of companies, and its ROA is 0.94%, better than 41.32% of companies. The company's ROIC is 1.57%, better than 38.29% of companies. Over the past 10 years, Gap has been profitable for 8 years, which is better than 58.86% of companies. Growth Prospects Despite its profitability, Gap's Growth Rank is relatively low at 2/10. The company's 3-year revenue growth rate per share is -0.60%, better than 37.31% of companies. Its 5-year revenue growth rate per share is 0.60%, better than 44.25% of companies. However, the company's total revenue growth rate for the next 3 to 5 years is estimated to be -1.76%, which is better than only 9.62% of companies. Competitive Landscape Gap Inc faces stiff competition from other companies in the Retail - Cyclical industry. Its main competitors are Urban Outfitters Inc (NASDAQ:URBN) with a market cap of $3.17 billion, American Eagle Outfitters Inc (NYSE:AEO) with a market cap of $3.57 billion, and Abercrombie & Fitch Co (NYSE:ANF) with a market cap of $3.17 billion. In conclusion, Gap Inc's stock has seen a significant surge over the past three months, with a 44.08% gain. The company's profitability is relatively high, with a Profitability Rank of 7/10. However, its growth prospects are relatively low, with a Growth Rank of 2/10. The company faces stiff competition from other companies in the Retail - Cyclical industry. Despite these challenges, the company's stock is currently fairly valued according to the GF Value, indicating potential for future growth and profitability.
GShort
by DEXWireNews