Last Thursday morning, The Gap, Inc. (GPS) reported August 2012 net sales that showed surging comp sales for all of the domestic brands. This news sent the stock surging to a new 52-week high of $36.60 before closing at $36.11.
The company is a leading global specialty retailer offering clothing, accessories, and personal care products under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands.
With the stock now up 100% for the year, many investors wonder when will the rally end and what could've predicted these gains. At Stone Fox Capital, the one predictive reason all year continued to be the huge Net Payout Yields (NPY). The company had consistently been in the top of the monthly NPY list, telling investors to stay invested.
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Disclosure: Long GPS. Please review the disclaimer page for more details.