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Are Investors Undervaluing The Gap (GAP) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is The Gap (GAP - Free Report) . GAP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.32 right now. For comparison, its industry sports an average P/E of 21.84. GAP's Forward P/E has been as high as 21.56 and as low as 9.98, with a median of 14.77, all within the past year.
GAP is also sporting a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GAP's industry currently sports an average PEG of 1.82. Over the last 12 months, GAP's PEG has been as high as 4.60 and as low as 1.05, with a median of 1.39.
We should also highlight that GAP has a P/B ratio of 3.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.25. Over the past 12 months, GAP's P/B has been as high as 4.07 and as low as 2.48, with a median of 2.99.
Finally, we should also recognize that GAP has a P/CF ratio of 7.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.58. Over the past year, GAP's P/CF has been as high as 14.18 and as low as 5.85, with a median of 7.33.
These are only a few of the key metrics included in The Gap's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GAP looks like an impressive value stock at the moment.
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Are Investors Undervaluing The Gap (GAP) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is The Gap (GAP - Free Report) . GAP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.32 right now. For comparison, its industry sports an average P/E of 21.84. GAP's Forward P/E has been as high as 21.56 and as low as 9.98, with a median of 14.77, all within the past year.
GAP is also sporting a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GAP's industry currently sports an average PEG of 1.82. Over the last 12 months, GAP's PEG has been as high as 4.60 and as low as 1.05, with a median of 1.39.
We should also highlight that GAP has a P/B ratio of 3.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.25. Over the past 12 months, GAP's P/B has been as high as 4.07 and as low as 2.48, with a median of 2.99.
Finally, we should also recognize that GAP has a P/CF ratio of 7.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.58. Over the past year, GAP's P/CF has been as high as 14.18 and as low as 5.85, with a median of 7.33.
These are only a few of the key metrics included in The Gap's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GAP looks like an impressive value stock at the moment.