Gap Inc's stock surged 5.03% during intraday trading on Thursday, as investors positioned themselves ahead of the company's scheduled first-quarter earnings report after the closing bell.

The apparel retailer is set to release its quarterly results, with analysts expecting earnings of 48 cents per share on revenue of $3.52 billion. Market sentiment appears optimistic, with several analysts maintaining positive ratings on the stock in recent weeks, including Buy and Overweight recommendations from firms like BTIG, TD Cowen, and JP Morgan.

Options market activity further highlights the anticipated volatility, with implied volatility suggesting the market is expecting a significant move in Gap's share price following the earnings announcement. The pre-earnings options volume was notably elevated at 3.0 times normal levels, indicating heightened investor interest and speculation surrounding the upcoming results.