Is Gap Stock a Buy After the CEO Steps Down?

A year ago, Gap (NYSE: GPS) stock was flying high, as government stimulus programs and fading COVID-19 restrictions ignited a boom in sales of discretionary goods. Unfortunately, the company's momentum didn't last. Supply chain problems caused Gap to miss its 2021 full-year guidance. The retailer's problems have mounted in 2022.

With Gap's post-pandemic turnaround plan in shambles, the company fired CEO Sonia Syngal this week. Meanwhile, Gap stock has tumbled into single-digit territory -- down more than 50% compared to three years ago and down 74% from its July 2021 peak.

Gap's results will probably remain weak in the near term. However, the company has a strong balance sheet and solid turnaround potential. That makes the stock's recent tumble a potential buying opportunity for risk-tolerant investors.

Source Fool.com