10 Undervalued Cyclical Stocks to Invest In

​5. The Gap, Inc. (NYSE:GAP)

Forward P/E Ratio: 45

Number of Hedge Fund Holders: 49

The Gap, Inc. (NYSE:GAP) is one of the Undervalued Cyclical Stocks to Invest In. On January 8, Jay Sole from UBS upgraded Gap, Inc. (NYSE:GAP) from Hold to Buy and also raised the price target from $26 to $41. Earlier on January 6, Barclays reiterated a Buy rating on the stock and raised the price target from $30 to $33.

​Analysts at UBS noted that the company is approaching an inflection point in sales and earnings. The firm believes that this has not been completely priced into the share price. UBS also noted that the revenue and profit of the company are expected to increase during the year, driven by new initiatives that have started to contribute and the stabilizing performance of the company in Athleta.

UBS expects The Gap, Inc. (NYSE:GAP) to post 4.4% revenue growth in 2026, along with a 14% earnings growth. This marks an improvement from the previous year’s performance, where the company posted 1.9% revenue growth and a year-over-year decline in earnings.

​The Gap, Inc. (NYSE:GAP) is an American specialty apparel company offering clothing, accessories, and personal care products for women, men, and children through brands like Old Navy, Gap, Banana Republic, and Athleta.