Gap Stores (GPS) has long been an under performing retail stock. Finally, there is hard data that GPS may be turning around.
GPS has just announced that it sees Q4 EPS of $0.41 -$0.42 vs consensus of $0.25. In 2012, GPS faces easy revenue and margin comparisons. merchandise in the store is improving.
Please do not chase the stock as it is likely to gap up. It is best to wait for a pull back into the buy zone. Buy zone is $18.26 to $19.83. Stop zone is $16.26 to $17.73. Target zone is $25 to $26.
