Revenue for the third quarter of fiscal 2023 is forecast at $54.58 billion, which would be down 1.2% sequentially but up 3.8% year over year. Adjusted EPS are forecast at $3.31, up 0.4% sequentially and by 4.4% year over year. For the full fiscal year ending in August, current estimates call for EPS of $14.42, up 8.7%, on sales of $242.32 billion, up 6.8%.
Costco stock trades at 33.6 times expected 2023 EPS, 30.9 times estimated 2024 earnings of $15.67 and 28.1 times estimated 2025 earnings of $17.28 per share. Its 52-week trading range is $424.35 to $564.75. The company pays an annual dividend of $4.08 (yield of 0.83%). Total shareholder return for the past year was 13.73%.
Gap
Apparel retailer Gap Inc. (NYSE: GPS) has seen its share price drop by about 26.4% over the past 12 months, including drops of more than 48% over the past six months and nearly 33% for the year to date. The company is expected to post results after markets close on Thursday.
The company said last month that it would fire more than 500 employees in an effort to become a leaner, meaner machine. Like many other apparel retailers, swollen inventories and declining sales and margins have decimated profits. Gap is just tinkering around the edges as it continues searching for a permanent CEO.
Analysts continue to be cautious on the stock, with 14 of 21 having a Hold rating and just three others rating it a Buy or Strong Buy. At a share price of around $7.60, the upside potential based on a median price target of $10.00 is 31.6%. At the high target of $23.50, the implied gain is more than 200%.
First-quarter fiscal 2024 revenue is forecast to come in at $3.28 billion, down 22.6% sequentially and 5.7% lower year over year. Analysts are forecasting a loss per share of $0.16, compared to a loss of $0.75 per share in the prior quarter and a per-share loss of $0.44 in the year-ago quarter. For the full fiscal year ending next January, analysts expect EPS of $0.61, up from a loss of $0.40 in fiscal 2023, on sales of $15.11 billion, down 3.2%.
Gap stock trades at 12.5 times expected 2024 EPS, 8.7 times estimated 2025 earnings of $0.87 and 7.9 times estimated 2026 earnings of $0.96 per share. Its 52-week range is $7.48 to $15.49. Gap pays an annual dividend of $0.60 (yield of 7.71%), and the total shareholder return for the past year was negative 51.60%.
Marvell
Chipmaker Marvell Technology Inc. (NASDAQ: MRVL) has seen its share price drop by about 15% over the past 12 months, and that drop has been cut by more than half thanks to a 35% share price jump so far in 2023. Marvell reports quarterly results after markets close on Thursday.
The company is also following the lead of other chipmakers by searching for ways to reduce its dependence on China-based suppliers. Marvell announced Tuesday that it will build a new design center in Ho Chi Minh City after laying off its entire Chinese R&D operation in March. No word yet if the Chinese government will retaliate as it did with Micron, but that kind of response is probably as close as you can get to a sure thing.
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