Even Without Growth, Gap Turned Around Its Finances: Time to Buy?

YCHARTS.com submits:

Chances are, this holiday season you’ll get desperate for a gift at some point and poke your head in the door of a Gap (GPS) store. What will you find? Khakis, jeans and sweaters. Yawn. Just like last year and many years before. Gap shares have been just as exciting in recent years, sliding sideways.

But look around and what are people wearing? Khakis, jeans and sweaters. And Gap gets its share of those sales, if barely. The company suffered a dismal top-line performance, with same-store sales declining five years in a row before turning up, ever so slightly, so far in 2010. But with cost control, a strong balance sheet and loads of stock buybacks, Gap has made itself an attractive investment. The YCharts’ Pro Ratings have the stock undervalued at its current price.