Bull of the Day: The Gap (GAP)

While the market’s sentiment has certainly shifted since the election, recently there have been some road bumps. Small caps, especially, have struggled since Thanksgiving. What felt like an undying tailwind for stocks, is starting to die down. The everlasting specter of inflation remains in the room. It lingers and provides us with a somewhat uneasy backdrop.You can make that backdrop easier by looking for stocks with strong earnings trends. Companies that consistently beat earnings expectations and deliver growth stand the test of time. These are the stocks you can use to ride out the dips and push out even higher to new highs.One such stock is today’s Bull of the Day, The Gap (GAP).  With more than 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands.The company is coming off a quarter where it beat earnings expectations by 28%. This prompted no fewer than seven analysts to increase earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for the current year from $1.88 to $2.02 while next year’s number is up from $2.02 to $2.16. That represents EPS growth of 41% this year and 6.6% next year. That’s the reason for the stock being a Zacks Rank #1 (Strong Buy).Image Source: Zacks Investment ResearchA quick look at the Price, Consensus and EPS Surprise Chart shows the move higher in earnings since Q32023. That move higher followed a huge drop coming off of the highs of early 2021. It should come as no surprise that the stock came down off its highs as well. Great to see that the company has consistently beat earnings expectations.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Gap, Inc. (GAP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks