Earnings Estimates Rising for Gap (GAP): Will It Gain?

Core Viewpoint - Gap (GAP) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimates - Analysts' optimism regarding Gap's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is projected at $0.43 per share, reflecting a year-over-year increase of +4.88%. The Zacks Consensus Estimate has risen by 5.91% in the last 30 days, with four estimates increasing and one decreasing [5]. - For the full year, the earnings estimate is expected to be$ 2.37 per share, indicating a +7.73% change from the previous year. Over the past month, seven estimates have been revised upward, contributing to a 10.46% increase in the consensus estimate [6][7]. Zacks Rank - Gap currently holds a Zacks Rank 1 (Strong Buy), attributed to favorable estimate revisions. This ranking is based on a system that has shown a strong track record of outperformance, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3][8]. - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [8]. Investment Outlook - The strong estimate revisions have led to a 5.6% increase in Gap's stock price over the past four weeks, suggesting potential for further upside. Investors may consider adding Gap to their portfolios [9].