Jim Cramer Is Focused on These 15 Stocks This Week

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

Cramer mentioned The Gap, Inc.’s (NYSE:GAP) CEO and commented that it has been misjudged.

“Thursday gets easier, right? Gap reports. I’d definitely be a buyer ahead of the quarter. The stock’s back to $21, I can’t believe it. CEO Richard Dickson is reinventing this place and I think it represents tremendous value for aspirational accessible apparel. Now, it’s come down, thanks to tariff worries, but I think that’s looking good. The Gap, wow. I think it’s being looked [at] through the wrong lens. I think it’s a very inexpensive stock.”

Gap (NYSE:GAP) is an apparel retailer offering clothing, accessories, and personal care products for men, women, and children. Despite facing challenges in recent years, the company has seen a positive shift in its performance. In May, it reported a significant milestone: for the first time in seven years, all four of its brands experienced growth in quarterly comparable sales.

A key factor in this turnaround has been the leadership of Richard Dickson, who became CEO of the company last year. Dickson, known for his successful transformation of Mattel’s Barbie brand, was seen as the right person to revive Gap Inc. His approach has centered on clarifying the identities of the company’s brands and recovering from the strategic missteps that had hindered growth.

Dickson’s confidence in Gap’s (NYSE:GAP) progress comes from several areas, including the success of Gap’s recent Linen Moves line, which introduced a collection of higher-quality linen clothing, and the continued strength of Old Navy. As one of the company’s most important brands, Old Navy accounts for nearly half of Gap Inc.’s total sales and has benefitted from what Dickson describes as “clarity and conviction.”