The staggering rise of Gap Inc. (NYSE: GPS) stock over the last twelve months presents a unique opportunity for investors. Despite the stock’s incredible run-up, there remain multiple catalysts that could propel the shares much higher in the months ahead.
The Gap has long been a reliable and prosperous investor’s choice. It is a giant in the world of fashion retail, boasting over 3,000 stores across the world selling everything from casual wear to upscale fashion. Gap Inc. is the parent company of a number of high-end retail chains including Old Navy, Banana Republic, and Athleta – all of which have enjoyed robust sales in recent quarters.
The company recently reported stellar financial results for the 3rd quarter of 2019, recording net income of $316 million – up 90% year-over-year – and sales of $4.67 billion. The remarkable growth of GPS was especially impressive given the current economic environment. The broader market has been beset by challenging economic conditions, but Gap Inc. has bucked this trend and flourished.
The stock is trading at all-time highs and investors are scrambling to get in on the action. Analysts remain bullish on the stock and the earnings outlook is improving by the day. Furthermore, the company’s ambitious Goal 2025 plan – which includes opening another 300 stores worldwide – will provide a significant boost to Gap’s top line.
GPS has also been benefiting from the nation’s shift towards athleisure. Americans have increasingly favored ‘athletic-inspired’ clothing in favor of more traditional fashion, and each of Gap Inc.’s properties has been cashing in on this trend. Gap Inc.’s combination of stylish and affordable apparel is precisely matched to this shift and – as such – the company’s total retail sales continue to expand.
It is clear that Gap Inc. is an excellent long-term investment opportunity. The stock is currently trading at unprecedented highs, but its momentum is likely to continue in the near future. The company has a proven track record of success, its product lineup is perfectly suited to a booming athleisure trend, and it is aggressively expanding its store count worldwide. With such an attractive setup, now is the time to capitalize on Gap Inc.’s dynamic surge.