It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
With more than 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Feb. 1, 2025, Gap had 3,569 stores in nearly 40 countries, of which 2,506 were company-operated.
GAP sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Retail - Apparel and Shoes industry's P/E of 13.3X, shares of Gap are trading at a forward P/E of 9.1X. GAP also has a PEG Ratio of 1.5, a Price/Cash Flow ratio of 6X, and a Price/Sales ratio of 0.5X.
Many value investors pay close attention to a company's earnings as well. For GAP, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.23 to $2.37 per share for 2026. Per share GAP boasts an average earnings surprise of 77.5%.
Investors should take the time to consider GAP for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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The Gap, Inc. (GAP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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