The Gap, Inc.GAP
▼ NegativeDemandrelevance
Revenue nearly flat over three years signals weak long-term demand.
Impact on stocks 1
Consumer Discretionary
The Gap, Inc.Gap Stock Declines 22.5% in Six Months, Analysts Recommend Holding Off
Earnings
Gap's stock has fallen 22.5% over the past six months to $20.59 per share, prompting analysts to advise investors to avoid the stock for now. The company's trailing 12-month revenue of $15.4 billion is nearly flat compared to three years ago, signaling weak long-term demand. Gap has kept its store count steady at 3,477 locations over the last two years, while peers have expanded, and its five-year average return on invested capital of 8.4% lags behind top retailers. The stock trades at 8.5 times forward earnings, but analysts see significant downside risk due to shaky fundamentals and suggest better opportunities exist elsewhere.
The Gap, Inc.Revenue nearly flat over three years signals weak long-term demand.