YTD Return: +45%
While The Gap Inc. (GPS) — the company behind its namesake Gap, plus Old Navy and Banana Republic – was super-hot at the turn of the century, and currently is much further along in getting back to its prime than other “comebacks” on this list.
GPS has climbed 45% since 2013 kicked off and boasts a five-year annualized return of 40%.
As The Wall Street Journal explains: “Gap ran into trouble a couple of years ago, with too many U.S. stores and clothes that lost their trendsetting edge. It also faced rising competition from fast-fashion players such as Forever 21.”
Lately, though, Gap closed locations and revamped its product line. The result: Year-over-year gains in sales and earnings for the past five quarters. And the retailer beat analyst expectations by posting a 43% improvement in profits for the most recent quarter. That growth is expected to stay in the double-digits over the next half-decade, including a 17% jump for the current year.
Of course, such success means GPS has a higher bar to meet, so Gap will have to work hard to stay in style. Just today, Piper Jaffray downgraded GPS shares to “neutral,” saying earnings increases have been baked in.