Once the king of U.S. apparel, Gap (NYSE: GPS) hasn’t found a way to bring all of its brands into the next wave of style. Sales began to falter several years ago, and the stock descended steadily over the past three years until it bottomed out with the rest of the stock market in March of 2020.
But then a curious thing happened. Sales began to bounce back from coronavirus lows, and the stock gained almost 400% from the March dump. Gap stock closed out 2020 up 15% and is already up 6% in January as of this writing.
Are investors being overly confident, or is Gap a buy now?