The Panic-Proof Portfolio (Stockchase Research)
Gap, Inc.
GAP-N
TOP PICK
Jul 15, 2025
Stockchase Research Editor: Michael O'Reilly
As consumer spending steadies, analysts expect GAP to benefit thru its many well recognized brands. Meanwhile it has been quietly accumulating cash, while buying back shares. It trades at 9x earnings, 2.3x book and supports a robust 29% ROE. Its dividend is backed by a payout ratio under 1/3 of cash flow. We recommend setting a stop-loss at $14, looking to achieve $27 -- upside potential of 28%. Yield 3.0%
As consumer spending steadies, analysts expect GAP to benefit thru its many well recognized brands. Meanwhile it has been quietly accumulating cash, while buying back shares. It trades at 9x earnings, 2.3x book and supports a robust 29% ROE. Its dividend is backed by a payout ratio under 1/3 of cash flow. We recommend setting a stop-loss at $14, looking to achieve $27 -- upside potential of 28%. Yield 3.0%
(Analysts’ price target is $27.07)