Cramer's Amazing Retail Stock Call in March is Now Up Nearly 40%
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Price: $21.03 -0.8%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 2.6%
EPS Growth %: +1,100.0%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 2.6%
EPS Growth %: +1,100.0%
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Gap, Inc. (NYSE: GPS) shares are popping higher Thursday morning following an earlier report showing July comps were positive all around, with the biggest jumps coming in North America (13 percent) and Old Navy North America (12 percent).
Following the outlook, Gap boosted its second-quarter earnings outlook to a range of 47 cents to 48 cents, whereas the Street is currently modeling EPS of 38 cents on average. The boost comes from second-quarter sales coming in at $3.58 billion, up 6 percent from last year, versus consensus views of $3.51 billion.
Making probably one of his more amazing calls on a stock is guru Jim Cramer, of CNBC and The Street fame. Back on March 1st, Cramer posted a video following February retail sales results for the month. Gap reported a 4 percent rise, being one of the better performers in the segment. On the results, Cramer was bullish on Gap, saying it benefited from a "double whammy" of stronger sales and lower cotton costs. He even said Gap "could be a juggernaut," which, incidentally, is the title of the 2 minute video he posted.
Nothing too specific was said about Gap, but Cramer liked the numbers overall and it seemed to him that Gap stock was "energized." When asked if now was the time to buy, Cramer noted in the interview that "Gap is for real, when you get a for real turnaround, it doesn't stop here [in audible]."
Also, Cramer said Kohl's (NYSE: KSS) and JCPenney (NYSE: JCP) just "can't do [the same thing as Gap]." Since February 29th (the last session before Cramer's video was posted), Kohl's is up just 3.0 percent while JCPenney is down 46.6 percent.
By comparison, Gap closed at $23.36 on February 29th and is now up 38.7 percent, inclusive of a 9 percent rise Thursday. Shares are still up over 9 percent with stronger volume on the session.
He noted that retail would be hit by a huge spike in gas prices, but since crude prices have been ebbing since winter, there seems little risk in that now.
The video is below:
Following the outlook, Gap boosted its second-quarter earnings outlook to a range of 47 cents to 48 cents, whereas the Street is currently modeling EPS of 38 cents on average. The boost comes from second-quarter sales coming in at $3.58 billion, up 6 percent from last year, versus consensus views of $3.51 billion.
Making probably one of his more amazing calls on a stock is guru Jim Cramer, of CNBC and The Street fame. Back on March 1st, Cramer posted a video following February retail sales results for the month. Gap reported a 4 percent rise, being one of the better performers in the segment. On the results, Cramer was bullish on Gap, saying it benefited from a "double whammy" of stronger sales and lower cotton costs. He even said Gap "could be a juggernaut," which, incidentally, is the title of the 2 minute video he posted.
Nothing too specific was said about Gap, but Cramer liked the numbers overall and it seemed to him that Gap stock was "energized." When asked if now was the time to buy, Cramer noted in the interview that "Gap is for real, when you get a for real turnaround, it doesn't stop here [in audible]."
Also, Cramer said Kohl's (NYSE: KSS) and JCPenney (NYSE: JCP) just "can't do [the same thing as Gap]." Since February 29th (the last session before Cramer's video was posted), Kohl's is up just 3.0 percent while JCPenney is down 46.6 percent.
By comparison, Gap closed at $23.36 on February 29th and is now up 38.7 percent, inclusive of a 9 percent rise Thursday. Shares are still up over 9 percent with stronger volume on the session.
He noted that retail would be hit by a huge spike in gas prices, but since crude prices have been ebbing since winter, there seems little risk in that now.
The video is below:
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