Once a Retail Leader, The Gap Is Now a Turnaround Story
Brendan Wagner submits:
Gap Inc. (GPS) shared jumped 5.5% Friday after reporting a fourth-quarter 2009 earnings beat and offering upside 2010 earnings guidance. The company announced plans for additional share repurchases, and a boost in the dividend gives the stock nearly a 2% dividend yield. (See earnings call transcript.)
I’ve liked this stock since last May for two main reasons: (1) CEO Glenn Murphy is a fantastic operator who is widely underappreciated by Wall Street; and (2) The company’s valuation, both on a P/E and Free Cash Flow Yield basis is too cheap.
Investing, Long Term Investment, stock market | admin February 26, 2010
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