) soared to a new 52-week high of $41.43 on Friday, May 10, after
it reported strong April 2013 comparable-store sales (comps)
performance and provided upbeat guidance for first-quarter fiscal
2013. The premier international specialty retailer eventually
closed trade at $40.99, reflecting a solid year-to-date return of
31.2% and 48.1% over the past year.
Based on the current price, this global specialty apparel
retailer is 0.9% lower the Zacks Consensus average analyst price
target of $41.79. Additionally, the company's long-term estimated
EPS growth rate is 10.9%, which is relatively healthy.
Average volume of shares traded over the last 3 months stands
at approximately 4.435 million. Moreover, the stock currently
trades at a forward P/E of 14.65x, lower than the peer group
average of 15.37x.
Gap, which has transitioned through a phase of decreasing
comparable-store sales and reduced profitability, is now set for
growth, riding on its turnaround strategies as evident from its
solid comps and sales performance in fiscal 2012 and fiscal 2013
Gap reported comps increase of 7% for the 4 weeks ended May 4,
2013 compared with a 2% fall registered for the 4 weeks ended May
5, 2012, driven by strong results at its namesake Gap and Old
Navy stores. Moreover, net sales in April totaled $1.21 billion,
up 5% from the prior-year period figure of $1.15 billion.
For the first quarter of fiscal 2013, the company's net sales
increased 7% to $3.73 billion, up from $3.49 billion in the
prior-year period. Comps rose 2% compared with a 4% increase in
the year-ago quarter.
Based on strong sales results, the company expects
first-quarter fiscal 2013 earnings per share in the range of
68-69 cents, compared with the reported year-ago quarter number
of 47 cents. This Zacks Rank #2 (Buy) company is scheduled to
report its first-quarter results on May 23. The current Zacks
Consensus Estimate is 57 cents per share.
With respect to earnings surprises, Gap has topped the Zacks
Consensus Estimate for the trailing 4 quarters with an average
surprise of 2.4%.
Other stocks in the retail space that touched all-time highs
on Friday, May 10 are
Home Depot Inc.
Abercrombie & Fitch Company
Newell Rubbermaid Inc.
), which reached $76.20, $54.20 and $27.63, respectively.
ABERCROMBIE (ANF): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
NEWELL RUBBERMD (NWL): Free Stock Analysis
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