The Gap, Inc. (GAP) Is A "Star," Says Jim Cramer

We recently published a list of Jim Cramer Says “We Have No Idea What’s Really Going To Happen” and Discusses These 12 Stocks. In this article, we are going to take a look at where The Gap, Inc. (NYSE:GAP) stands against other stocks that Jim Cramer discusses.

The Gap, Inc. (NYSE:GAP) is one of the most frequently discussed retail stocks by Cramer. The firm’s shares have gained 20.5% year-to-date as they have benefited from the successful results of the firm’s ongoing turnaround strategy. Through its new strategy, The Gap, Inc. (NYSE:GAP) aims to lower its operating costs by reducing the number of brands in its portfolio and business inefficiencies. In his previous comments about the firm, Cramer has remarked that the firm isn’t as reliant on China for its goods as others. Here are his recent thoughts about The Gap, Inc. (NYSE:GAP):

“But the one that is the star is GAP. Richard Dickson, people are finally realizing he’s doing great work. The stock went down to 19 during the last selloff. . . the stock went to 19, it’s now up to 28, it’s back to where it was. But that also ruins it a little because it’s going up. . .again we’re just in the law of this bill. And I’m just not going to say that you can buy stocks when we’re in the law.”

The Gap, Inc. (NYSE:GAP) is a frequent feature of Cramer’s morning show. He has commented on the firm’s turnaround strategy several times. He has also mentioned the firm’s China exposure. Here’s what he said after The Gap, Inc. (NYSE:GAP)’s fourth-quarter earnings report:

“How about the trade war though? Won’t President Trump’s volatile trade policy crush The Gap like it’s crushing everybody else in the business? Look, this company gets less than 10% of their products from China with less than 1% coming from Canada and Mexico. On the cost side, they’re fine. The only worry is that the trade war wrecks consumer confidence and crushes the entire economy, which does seem like a possibility at this point. But as I said repeatedly, I think the Federal Reserve will start cutting rates at that point in order to prevent a recession.

When I asked Dickson about the concerns surrounding the health of consumer, he emphasized that what Gap’s been doing to reinvigorate their brands is resonating with customers and their ability to gain market share in declining industry makes him feel pretty confident about the future of the business. I think he’s probably right. Even if the company gets hit with some near-term turbulence, I like it.”

Overall, GAP ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of GAP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GAP and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.