Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. 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 $221.4 million.
- GPS is down 2.6% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GPS with the Ticky from Trade-Ideas. See the FREE profile for GPS NOW at Trade-Ideas More details on GPS: The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands worldwide. The stock currently has a dividend yield of 2.1%. GPS has a PE ratio of 15.6. Currently there are 10 analysts that rate Gap a buy, no analysts rate it a sell, and 17 rate it a hold. The average volume for Gap has been 5.3 million shares per day over the past 30 days. Gap has a market cap of $19.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.48 and a short float of 3% with 1.46 days to cover. Shares are up 9.5% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Compared to its closing price of one year ago, GPS's share price has jumped by 34.35%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GPS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The current debt-to-equity ratio, 0.46, 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. Compared to other companies in the Specialty Retail industry and the overall market, GAP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $752.00 million or 5.76% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.83%.
- GAP INC's earnings per share declined by 6.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GAP INC increased its bottom line by earning $2.75 versus $2.32 in the prior year. This year, the market expects an improvement in earnings ($3.02 versus $2.75).
- You can view the full Gap Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.