For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
With more than 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Feb. 1, 2025, Gap had 3,569 stores in nearly 40 countries, of which 2,506 were company-operated.
GAP boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #1 (Strong Buy) rating. Its bottom-line is projected to rise 7.7% year-over-year for 2026, while Wall Street anticipates its top line to improve by 1.6%.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.22 to $2.37 per share. GAP boasts an average earnings surprise of 77.5%.
Gap is also cash rich. The company has generated cash flow growth of 0.7%, and is expected to report cash flow expansion of 26.9% in 2026.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, GAP should be on investors' short lists.
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The Gap, Inc. (GAP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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