10 Stocks End With Solid Performance

1. The Gap Inc. (NYSE:GAP)

Gap Inc. soared by 18.84 percent on Friday to end at $23.15 apiece as investors cheered news of impressive earnings performance in the fourth quarter and fiscal year ending February 2025.

In its latest earnings release, GAP said it achieved an 11.3-percent increase in net income during the quarter at $206 million from $185 million despite net sales decreasing by 3.5 percent to $4.15 billion from $4.3 billion.

Meanwhile, net income for the full year surged by 68 percent to $844 million from $502 million year-on-year, while net sales inched up by 1.3 percent to $15.086 billion from $14.889 billion.

Following the results, the company announced a dividend of $0.165 per share, representing a 10-percent increase compared with the fourth quarter of the fiscal year 2024.

Looking ahead, GAP said it targets to book between a 1 and 2 percent increase in net sales for the full year 2025, and flat net sales for the first quarter period.

While we acknowledge the potential of GAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GAP but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.