At $33.28, Gap (GPS) a Buy based on the most current stock market ratings, and relative pricing of its shares. Gap Inc's (NYSE:GPS) Buy recommendation is the conclusion of a proprietary process of evaluation and produced outcomes that were above average in 4 areas: an industry group rated above average in attractiveness, a ranking in its sector group that is in the top quarter, ranking in the company's industry group that is in the top quarter, and a quantitative risk/reward calculation that is attractive; and produced below average conclusions in 2 areas: an economic sector ranked below average in attractiveness, and an analytical score that is near average. The current Portfolio Grader recommendation on the shares has been in place for 3 months.
The company is a $12.8 billion in market value component of the Apparel/Footwear Retail GICS industry group where the stock's Portfolio Grader ranking places it 7 among the 37 companies in this industry group, giving it a well above-average position. GPS is ranked in the top quartile of the sector with a ranking of 26 among the 149 companies in the sector of its Retail Trade sector and 644 in the Portfolio Grader company universe.
Portfolio Grader currently ranks the Retail Trade sector number 13 among the 20 sectors in its universe putting it in the third quartile of all the GICS sectors. The Apparel/Footwear Retail industry group is ranked 46 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
Gap has realized above-average scores in 2 of the 8 fundamental areas appraised by Portfolio Grader and average or below-average grades in 6 of the areas used in the ranking of company stocks.
GPS's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum worse than average. GPS's score for return on equity is strikingly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Gap places in the top half of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to view GPS's shares from the aspect of risk/reward. This exclusive scoring approach considers the relative value of the company's shares based on the recent $33.28 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, GPS currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.