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Are Investors Undervaluing The Gap (GPS) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is The Gap (GPS - Free Report) . GPS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that GPS has a P/B ratio of 4.01. 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 5.26. Over the past 12 months, GPS's P/B has been as high as 4.07 and as low as 1.36, with a median of 2.75.
Finally, we should also recognize that GPS has a P/CF ratio of 9.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.30. GPS's P/CF has been as high as 14.18 and as low as 5.38, with a median of 7.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that The Gap is likely undervalued currently. And when considering the strength of its earnings outlook, GPS sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing The Gap (GPS) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is The Gap (GPS - Free Report) . GPS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that GPS has a P/B ratio of 4.01. 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 5.26. Over the past 12 months, GPS's P/B has been as high as 4.07 and as low as 1.36, with a median of 2.75.
Finally, we should also recognize that GPS has a P/CF ratio of 9.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.30. GPS's P/CF has been as high as 14.18 and as low as 5.38, with a median of 7.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that The Gap is likely undervalued currently. And when considering the strength of its earnings outlook, GPS sticks out at as one of the market's strongest value stocks.