From Nasdaq: 2025-05-29 00:17:00

Gap Inc. (NYSE: GAP) is set to reveal Q1 earnings on May 29, 2025, with analysts predicting 45 cents per share and $3.42 billion in revenue. Expected growth of 7% in earnings and 1% in sales compared to last year. Gap projects 1% to 2% sales growth for 2025 and 8% to 10% in operating income, focusing on brand development and supply chain improvements to drive growth. With $11 billion market capitalization, Gap remains operationally profitable, with $1.1 billion in operating profits and $844 million in net income over the last year.

For traders looking for event-driven opportunities, historical analysis shows positive post-earnings returns for Gap stock about 74% of the time. The Trefis High Quality portfolio offers a low-volatility alternative, outperforming the S&P 500 with over 91% returns since inception. Understanding the correlation between short-term (1D) and medium-term (5D, 21D) returns post-earnings can help traders make informed decisions on positioning.

Analyzing the historical returns for Gap stock post-earnings shows 74% positive one-day (1D) returns over the last five years, increasing to 82% over the past three years. Median positive return is 7.6%, while median negative return is -6.1%. Understanding the correlation between 1D, 5D, and 21D returns can help traders execute strategic trades based on past performance data. Trefis RV strategy has outperformed all-cap stock benchmarks, offering a potential strategy for investors looking for market-beating portfolios.



Read more at Nasdaq: How Will Gap’s Stock React To Its Upcoming Earnings?