Advertisement
Singapore markets close in 5 hours 12 minutes
  • Straits Times Index

    3,302.38
    +4.83 (+0.15%)
     
  • Nikkei

    38,504.11
    +401.67 (+1.05%)
     
  • Hang Seng

    17,936.63
    +0.51 (+0.00%)
     
  • FTSE 100

    8,142.15
    -4.71 (-0.06%)
     
  • Bitcoin USD

    65,500.47
    -786.20 (-1.19%)
     
  • CMC Crypto 200

    1,360.26
    -27.90 (-2.01%)
     
  • S&P 500

    5,473.23
    +41.63 (+0.77%)
     
  • Dow

    38,778.10
    +188.94 (+0.49%)
     
  • Nasdaq

    17,857.02
    +168.14 (+0.95%)
     
  • Gold

    2,339.10
    +10.10 (+0.43%)
     
  • Crude Oil

    80.18
    -0.15 (-0.19%)
     
  • 10-Yr Bond

    4.2790
    +0.0660 (+1.57%)
     
  • FTSE Bursa Malaysia

    1,611.23
    +3.91 (+0.24%)
     
  • Jakarta Composite Index

    6,734.83
    -96.73 (-1.42%)
     
  • PSE Index

    6,352.20
    -31.50 (-0.49%)
     

Why Gap (GPS) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

ADVERTISEMENT

Gap (GPS)

With more than 3,800 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.

GPS boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Gap are trading at a forward earnings multiple of 16.6X, as well as a PEG Ratio of 1.4, a Price/Cash Flow ratio of 10.4X, and a Price/Sales ratio of 0.3X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.06 to $0.69 per share. GPS has an average earnings surprise of 1001.6%.

Investors should take the time to consider GPS for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Gap, Inc. (GPS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research