The American brand, GAP, created in 1969 in San Francisco, has just completed another month of strong sales in March, with $ 1.46 billion, an increase of 10%. On the international market, the increase is more moderate at 2%.
From a fundamental viewpoint, the ratio "enterprise value to revenues" is estimated at 0.85x and EPS expectations are continuously revised upwards to USD 1.87 per share for the current fiscal year.
Technically, in weekly data, the stock has risen sharply since a significant reverse "head and shoulders” formed in late 2011. Since the technical configuration is showing signs of exhaustion with a resistance area that rejected attempts to progress.
In daily data, the upward trend, has left three significant gaps on the USD 24 area which could be filled during the current wave of profit taking. The 100 and 50-days moving averages could also serve as a “ reminder” encouraging a come back of the share to the last gap at USD 24.
On this level (USD 24/25), a buying strategy might be initiate to target the highest. A stop loss will be placed under the USD 23 to avoid a violent return.
The Gap, Inc. is a specialty apparel company in America. The Company offers apparel, accessories and personal care products for women, men and children. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories and lifestyle products for men, women and children. It is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. Its omni-channel services, including buying online pick-up in store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences, are tailored across its collection of brands. Gap includes adult apparel and accessories, GapKids, babyGap, Gap Maternity, GapBody, and GapFit collections. Banana Republic is a premium lifestyle retailer celebrating exploration and self-expression through timeless quality, versatile fabrics, and exceptionally made womenswear, menswear, and home designs.