Down 12% Over the Past Month, is Now a Good Time to Scoop Up Gap Stock?

Stock Markets35 minutes ago (Jun 11, 2021 10:31AM ET)

(C) Reuters. Down 12% Over the Past Month, is Now a Good Time to Scoop Up Gap Stock?

Gap’s (GPS) shares have declined 12% over the past month following the company’s sale of Janie and Jack and its proposed sale of Intermix. But the company has assured the market that these transactions are part of its Power Plan 2023. So, the question is, given the increasing foot traffic at GPS’ retail stores and its strong digital presence, is it wise to buy the dip in the stock? Let’s find out.The shares of iconic retail company The Gap, Inc. (GPS) have declined by 12.2% over the past month. Investors’ concerns over its sale of Janie and Jack in April 2021 and its proposed sale of Intermix could explain this decline. However, GPS has stated that these moves are part of its Power Plan 2023, in which the company aims to focus on its core brands, such as Old Navy and Athleta, to drive its sales. The stock has gained 183.9% over the past year and 55.1% year-to-date to close yesterday’s trading session at $31.31.

GPS got a boost in terms of positive investor sentiment after it introduced the first item –a new, recycled blue nylon jacket–from its collaboration with YEEZY Apparel on June 8. Furthermore, the company announced in April that Athleta will be expanding its footprint into Canada later this year.

So, GPS’ prospects seem bright because the company is expected to continue benefiting from its growing digital presence and increasing foot traffic at its retail stores as major economies continue to recover and gradually lift COVID-19 related restrictions.

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Down 12% Over the Past Month, is Now a Good Time to Scoop Up Gap Stock?

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