The Panic-Proof Portfolio (Stockchase Research)Gap, Inc.GAPTOP PICKJul 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%
Getting extremely overbought. Looking at the highs for 2001 and 2002, it got above the $25 for a couple of months, but it fell back pretty hard. There's going to be a natural resistance for the stock to go higher.
Good relative price appreciation which is an important criteria for his funds, but he would also have to know what is it trading at for every $ of revenues and what are its earnings prospects. (He didn't have the figures, but urged the caller to check this out for himself.)
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)