Jim Cramer Discusses These 10 Stocks & Says There’s “Pain” Ahead

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

Number of Hedge Fund Holders In Q4 2024: 39

The Gap, Inc. (NYSE:GAP) is a well-known American apparel company. Throughout 2024, the firm’s narrative depended on a turnaround effort under its new CEO. Through this strategy, The Gap, Inc. (NYSE:GAP) aims to streamline its businesses, consolidate brands, and reduce operating costs. Its shares are flat over the past year and have shed 8% year-to-date. The Gap, Inc. (NYSE:GAP)’s stock jumped by 18.8% after its solid fourth-quarter report saw $4.1 billion in revenue and $0.54 in profits-per-share beat analyst estimates. Here is what Cramer said:

“We’ve got, GAP up seven. Banana Republic up four. Old Navy up three. These are almost double what people would expect. In some case, GAP, the flagship, more than double. A lot of people say wait a second is it going to make any money . .tariffs, only 11% of its goods are made between Mexico and China. Uh, this man has taken this company, he came on first, he said listen I gotta fix the balance sheet. . . He’s got 2.6 billion in cash, got a 3% yield. This deserves to trade much higher. Somehow it dropped. . . .this thing has cascaded lower for absolutely no reason whatsoever. This is the stock to buy in retail. Alright. . . .I wanna own this one.”