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Stock Analyst Update

Gap Stock Looks Like a Screaming Buy

Stock slides, but brand name and expansion opportunities offer upside.

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Shares of the Gap (GPS) may be down, but they’re not out. In fact, at current levels they look like a screaming buy.

Short-term problems are to blame for the stock’s recent decline, and when these problems clear up, the stock should bounce back. At current levels, investors have the chance to buy one of the great retail stocks of the past decade at a very reasonable price.

Mark Sellers does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.