Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, apparel retailer Gap (NYSE: GPS) has received the dreaded one-star ranking. Our data has shown that one-star stocks woefully lag the market average; conversely, five-star stocks outperform the S&P by a significant margin.
With that in mind, let's take a closer look at Gap's business, and see what CAPS investors are saying about the stock right now.
Gap facts
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Headquarters (Founded)
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San Francisco, Calif. (1969)
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Market Cap
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$8.8 Billion
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Industry
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Apparel Stores
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Trailing-12-Month Revenue
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$15.1 Billion
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Management
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CEO Glenn Murphy (Since July 2007)
CFO Sabrina Simmons (Since January 2008)
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Annual Revenue Growth (Average, Past Five Years and TTM)
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(0.6%) and (5.5%)
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Competitors
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Abercrombie & Fitch (NYSE: ANF)
American Eagle Outfitters (NYSE: AEO)
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CAPS Members Bearish on GPS Also Bearish on:
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General Motors (NYSE: GM)
Ford Motor (NYSE: F)
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CAPS Members Bullish on GPS Also Bullish on:
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Apple (Nasdaq: AAPL)
Google (Nasdaq: GOOG)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, 313 of the 653 members who have rated Gap -- some 48% -- believe the stock will underperform the S&P 500 going forward. These Fools include CharlieBombay and CAPS All-Star Polarimetric.
Just yesterday, CharlieBombay spelled out the simple short case (for the short term, at least):
"Biggest retail day of the year coming up. Worst retail year in decades. Stock up a bunch in the last week."
In an earlier pitch from last month, Polarimetric shared that bearish sentiment and wrote:
"In the smallest of economic downturns, Gap will be one of the first ones to fall. Their prices are absolutely ridiculous and for no reason. People have less money, and they don't have the money anymore to spend on that $70 top. Gap will have their lunch eaten by cheaper retailers like J.C. Penney easily. Old Navy is their only hope of success at the moment, and even they're going out of style."
What do you think about Gap, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!
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