Panic Looms as Gap (GPS) Stock Continues to Run
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Price: $41.67 +1.49%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 1.6%
EPS Growth %: +65.9%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 1.6%
EPS Growth %: +65.9%
Trade GPS Now!
Last Thursday shares of retailer Gap (NYSE: GPS) popped following the company’s earnings report. Since then the Street has been buzzing with opinions about where the stock goes from here. In a notable article over the weekend, Barron's said it may be time to take profit. After all, the stock's price has nearly doubled since the beginning of the year and at 16x forward earnings, valuation may be extended.
Analyst Laura Champine of Canaccord Genuity went one step further and reiterated a Sell rating on the stock, citing concerns over second half margins, back-to-school, and the upcoming holiday season.
On the other side of the rope is analyst Adrienne Tennant of Janney, who maintained her Buy rating. She believes the price could go as high as $39 per share driven by "ongoing domestic improvement." The stock currently trades at $36, and if another $3 is really in the cards it might be worth hanging on for a while longer. Others think the stock could go as high as $ 45.
As Barron's notes, no one ever went broke cashing in on a 97 percent return. While true, to many this may not be a rational enough argument to pull the plug on a winning trade. And besides, there is another old saying that comes in just has handy - cut your losses early and let your profits run. Granted 97 percent is a pretty decent run, but it's no reason to panic.
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Analyst Laura Champine of Canaccord Genuity went one step further and reiterated a Sell rating on the stock, citing concerns over second half margins, back-to-school, and the upcoming holiday season.
On the other side of the rope is analyst Adrienne Tennant of Janney, who maintained her Buy rating. She believes the price could go as high as $39 per share driven by "ongoing domestic improvement." The stock currently trades at $36, and if another $3 is really in the cards it might be worth hanging on for a while longer. Others think the stock could go as high as $ 45.
As Barron's notes, no one ever went broke cashing in on a 97 percent return. While true, to many this may not be a rational enough argument to pull the plug on a winning trade. And besides, there is another old saying that comes in just has handy - cut your losses early and let your profits run. Granted 97 percent is a pretty decent run, but it's no reason to panic.
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