9 Stocks on Jim Cramer’s Radar

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

Number of Hedge Fund Holders: 39

On March 13, Cramer referred to his conversation with The Gap, Inc.’s (NYSE:GAP) CEO Richard Dickson, praising the strong fourth-quarter earnings report. He noted that despite slightly lower guidance, the market reacted positively, and the company achieved its eighth consecutive quarter of gaining or maintaining market share across all four brands. He went on to ask:

“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.”

The Gap (NYSE:GAP) is a retail company that sells clothing, accessories, and personal care items for men, women, and children.