11 Best Undervalued Stocks to Invest in According to Reddit

9. The Gap, Inc. (NYSE:GAP)

Number of Hedge Fund Holders: 44

Forward P/E: ~10.6x

The Gap, Inc. (NYSE:GAP) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 4, The Gap, Inc. (NYSE:GAP) announced its strategic expansion into beauty and accessories, reinforcing its commitment to becoming the high-performing house of iconic American brands. According to the company, the beauty and personal care market remains one of the fastest-growing and most resilient retail categories in the US. The Gap, Inc. (NYSE:GAP) expects a clear and meaningful opportunity to expand in this category, given its plans for the phased launch, starting with an initial test-and-learn expression at Old Navy later in the fall.

In 2026, The Gap, Inc. (NYSE:GAP) targets to seed to scale its Old Navy beauty business and launch brand-right expressions throughout the portfolio. In Q2 2025, the company overdelivered on profit expectations and achieved its topline goals. It saw net sales of $3.7 billion, with net income coming at $216 million and diluted EPS at $0.57. For FY 2025, The Gap, Inc. (NYSE:GAP) expects net sales growth of 1% – 2%.