12 Stocks on Jim Cramer’s Radar

10. The Gap, Inc. (NYSE:GAP)

Number of Hedge Fund Holdings: 49

The Gap, Inc. (NYSE:GAP) is a well-known American apparel retailer. Its shares are up by 15% year-to-date but have spent a tumultuous time on the market. The volatility in The Gap, Inc. (NYSE:GAP)’s shares comes at a time when it is in the midst of a turnaround under CEO Richard Dickson. For instance, the shares dipped by 20% on May 30th after the firm shared that it could face as much as $300 million in excess costs due to tariffs.

Since the dip, The Gap, Inc. (NYSE:GAP)’s shares are up by more than 21%. During this time period, several analysts have shared their thoughts about the firm. One such coverage came from Morgan Stanley as it increased The Gap, Inc. (NYSE:GAP)’s share price target to $28 from $27 and kept an Overweight rating on September 16th. A little over a month later, on November 14th, Jefferies raised its share price rating for The Gap, Inc. (NYSE:GAP)’s stock to Buy from Hold and increased the share price target to $30 from $22. The investment bank pointed out that the retailer was benefiting from improved web and foot traffic for key brands such as Old Navy.

As for Cramer, he commented on the tariff overhang for The Gap, Inc. (NYSE:GAP)’s stock. With the Supreme Court deliberating President Trump’s emergency use of tariffs and expected to announce a decision in January, Cramer commented that the legal tussle is also making its way to The Gap, Inc. (NYSE:GAP)’s shares. His remarks came after Telsey and Baird upgraded the shares to Outperform and set the share price target to $32 and $33, respectively:

“Although it’s interesting that, people are now starting to recommend stocks like Gap, on the idea that we’re going to get the Supreme Court to go against the President.”