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Is The Gap (GAP) a Great Value Stock 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is The Gap (GAP - Free Report) . GAP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.3, while its industry has an average P/E of 18.07. GAP's Forward P/E has been as high as 12.41 and as low as 7.35, with a median of 10.44, 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, GAP sticks out as one of the market's strongest value stocks.

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