DON'T BUY
Walmart will crush everything when it reports tomorrow. Avoid the Gap. Avoid.
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SELL
He sold 20 positions and now has his highest cash position (over 60%) since 2008. The reason is that he doesn't know what will happen with the economy and is bracing for a big decline if that happens. If so, he will buy back these shares at a lot lower price. He sold Gap, among others. He often gets Gap emails touting 60-70% off. He sold many retailers, because he expects them to slash prices to move inventory. Higher interest rates are another worry.
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DON'T BUY
American Eagle is better (he owns it) at a 3% yield and good managers and it just bought a great company, and the stock is getting hammered. So, how can he recommend Gap, whose business is worse?
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 14/21, Down 12%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GPS has triggered its stop at $20. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 19%, considering the previous buy recommendation. We will look for better opportunities.
specialty stores
premium

It’s a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate GPS as a TOP PICK. The company continues to demonstrate itself as a leader in e-commerce as an apparel retailer. It trades at 12x earnings, compared to peers at 19x. It pays a decent dividend, backed by a payout ratio under 25% of cash flow and cash reserves continue to grow. We would buy this with a relatively tight stop at $20.00 -- looking to achieve $34.00 (upside potential over 45%). Yield 2.12% (Analysts’ price target is $34.25)
specialty stores
premium

It’s a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly GPS has emerged as a leader in e-commerce as an apparel retailer. Their online business accounted for 33% of total sales last quarter. Recently reported earnings of $0.70 per share easily exceeded analyst expectations of $0.46. Comparable same-store sales are up 12% from pre-pandemic levels. Management raised earnings guidance to $2.10-$2.25 per share for the full year, compared to analyst calls for $1.79. It trades at 14x earnings, compared to peers at 20x. It pays a reasonable dividend, backed by a payout ratio of under 25% of cash flow. We would buy this with a stop loss at $20, looking to achieve $36.50 -- upside potential over 35%. Yield 1.81% (Analysts’ price target is $36.58)
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BUY
It reports next Thursday. They've done a great turnaround at the Gap and Old Navy stores, and customers are loyal. However, he doesn't like the current valuation after a big move.
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BUY
It had a 30% move in the first half of this year and he expects better in the second. It trades at only 16x PE. He sees a good future here with their celebrities.
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BUY

The U.S. reopening trade People will buy business casual again and this will be a huge driver in the apparel space. So, Gap or even Macy's fits the bill. However, to play the US reopening, buy energy stocks.

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BUY

Part of the "lag trade" of brick-and-mortar mall retailers that sold off this summer, but are coming back with room to run. Their Athleta line competes with Lululemon. People are buying comfortable clothing, now that they work from home (as opposed to business wear). In August's report, Athleta sales were up 19% while Old Navy was up 24%. Brick and mortar took a hit in half, but digital sales which nearly doubled. Banana Republic was the weakest segment though. Store closures are good for the bottom line (bad for workers). The Gap is hiring (not firing) 50,000 seasonal people to shore up its holiday digital sales. Gap trades at a 18x PE, reasonable.

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DON'T BUY

The problem with this company and all these clothing stores is that it is very difficult to compete. Space is expensive. The ones that do well are the ones that go online. They are fighting a very difficult secular trend that is happening in the industry.

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DON'T BUY

He doesn't see the Gap different from other garment retailers; it's not special. He owns Lululemon instead, who have enjoyed strong growth. Go for growth. Gap is a laggard. TJX is interesting.

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WAIT

This is a cheap retail stock. Has a pretty good franchise, but like a lot of brick-and-mortar retail, their numbers have stagnated. This is probably one of the longer-term survivors, but the general sector still seems to be under pressure.

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BUY on WEAKNESS

A beaten up retail stock where they have to reduce footprint and increase online sales. Long term they have had these ups and down. If GPS-N is cheap it is usually a good place to get in.

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TOP PICK

*Short* Had a good run last quarter, and is up quite substantially, but is up substantially on not a lot of news, and with not anything particularly encouraging. Margins have dropped from 2014, where they were roughly 17%, and are now trending around 10%. Margins are contracting and they are struggling with e-commerce. The bright spot has been Old Navy which has done relatively well. This industry is very fickle in terms of fashion and getting that brand layup. Dividend yield of 3.61%. (Analysts’ price target is $26.20.)

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Showing 1 to 15 of 33 entries

Gap(GPS-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 3

Stockchase rating for Gap is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Gap(GPS-N) Frequently Asked Questions

What is Gap stock symbol?

Gap is a American stock, trading under the symbol GPS-N on the New York Stock Exchange (GPS). It is usually referred to as NYSE:GPS or GPS-N

Is Gap a buy or a sell?

In the last year, 3 stock analysts published opinions about GPS-N. 0 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Gap.

Is Gap a good investment or a top pick?

Gap was recommended as a Top Pick by on . Read the latest stock experts ratings for Gap.

Why is Gap stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Gap worth watching?

3 stock analysts on Stockchase covered Gap In the last year. It is a trending stock that is worth watching.

What is Gap stock price?

On 2022-11-22, Gap (GPS-N) stock closed at a price of $14.67.