Gap Inc's Meteoric Rise: Unpacking the 44% Surge in Just 3 Month

Gap Inc (NYSE:GPS), a prominent player in the Retail - Cyclical industry, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $4.87 billion, with a stock price of $13.17. Over the past week, the stock has gained 7.61%, and over the past three months, it has seen a remarkable 44.08% gain. According to the GF Value, the stock is currently fairly valued at $13.83, a significant increase from its undervalued status three months ago when the GF Value was $15.25.

Company Overview
Gap Inc is a renowned retailer of apparel, accessories, and personal-care products under various brands including Gap, Old Navy, Banana Republic, and Athleta. Old Navy is the company's most profitable brand, generating more than half of Gap's sales. The company operates approximately 2,600 stores in North America, Europe, and Asia, and franchises about 850 more in various regions. Gap also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Founded in 1969, Gap is based in San Francisco.

Profitability Analysis
Gap Inc's Profitability Rank stands at 7/10, indicating a relatively high level of profitability. The company's Operating Margin is 1.67%, better than 38.33% of companies in the industry. Its ROE is 4.67%, better than 46.24% of companies, and its ROA is 0.94%, better than 41.32% of companies. The company's ROIC is 1.57%, better than 38.29% of companies. Over the past 10 years, Gap has been profitable for 8 years, which is better than 58.86% of companies.

Growth Prospects
Despite its profitability, Gap's Growth Rank is relatively low at 2/10. The company's 3-year revenue growth rate per share is -0.60%, better than 37.31% of companies. Its 5-year revenue growth rate per share is 0.60%, better than 44.25% of companies. However, the company's total revenue growth rate for the next 3 to 5 years is estimated to be -1.76%, which is better than only 9.62% of companies.

Competitive Landscape
Gap Inc faces stiff competition from other companies in the Retail - Cyclical industry. Its main competitors are Urban Outfitters Inc (NASDAQ:URBN) with a market cap of $3.17 billion, American Eagle Outfitters Inc (NYSE:AEO) with a market cap of $3.57 billion, and Abercrombie & Fitch Co (NYSE:ANF) with a market cap of $3.17 billion.


In conclusion, Gap Inc's stock has seen a significant surge over the past three months, with a 44.08% gain. The company's profitability is relatively high, with a Profitability Rank of 7/10. However, its growth prospects are relatively low, with a Growth Rank of 2/10. The company faces stiff competition from other companies in the Retail - Cyclical industry. Despite these challenges, the company's stock is currently fairly valued according to the GF Value, indicating potential for future growth and profitability.