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Why Gap Inc. (GPS) Could Be a Top Value Stock Pick
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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; The Gap, Inc. (GPS - Free Report) .
Gap Inc. in Focus
GPS may be an interesting play thanks to its forward PE of 11.67, its P/S ratio of 0.59, and its decent dividend yield of 4%. These factors suggest that Gap Inc. is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that GPS has decent revenue metrics to back up its earnings.
But before you think that Gap Inc. is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.6% in the past 60 days, thanks to 10 upward revisions in the past two months compared to one lower.
So really, Gap Inc. is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Why Gap Inc. (GPS) Could Be a Top Value Stock Pick
Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; The Gap, Inc. (GPS - Free Report) .
Gap Inc. in Focus
GPS may be an interesting play thanks to its forward PE of 11.67, its P/S ratio of 0.59, and its decent dividend yield of 4%. These factors suggest that Gap Inc. is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that GPS has decent revenue metrics to back up its earnings.
Gap, Inc. (The) PE Ratio (TTM)
Gap, Inc. (The) PE Ratio (TTM) | Gap, Inc. (The) Quote
But before you think that Gap Inc. is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 1.6% in the past 60 days, thanks to 10 upward revisions in the past two months compared to one lower.
This estimate strength is actually enough to push GPS to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So really, Gap Inc. is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>