Trade-Ideas LLC identified

Gap

(

GPS

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Gap as such a stock due to the following factors:

  • GPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $145.2 million.
  • GPS is down 2.4% today from today's close.

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More details on GPS:

The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brand names. The stock currently has a dividend yield of 3%. GPS has a PE ratio of 12. Currently there are 2 analysts that rate Gap a buy, 2 analysts rate it a sell, and 17 rate it a hold.

The average volume for Gap has been 4.4 million shares per day over the past 30 days. Gap has a market cap of $12.7 billion and is part of the services sector and retail industry. The stock has a beta of 1.23 and a short float of 11.5% with 5.15 days to cover. Shares are down 28.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gap as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Specialty Retail industry and the overall market, GAP INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 41.46% is the gross profit margin for GAP INC which we consider to be strong. Regardless of GPS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.61% trails the industry average.
  • Net operating cash flow has decreased to $431.00 million or 10.76% when compared to the same quarter last year. Despite a decrease in cash flow of 10.76%, GAP INC is in line with the industry average cash flow growth rate of -10.94%.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 34.0% when compared to the same quarter one year ago, falling from $332.00 million to $219.00 million.

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