Gap jumped 13% today and still trades at ~8x forward earnings. Is the turnaround finally real?

The Gap raised its outlook after another big quarter, with comparable sales up 10%. The stock ripped as much as 20% before settling at 13% on the day, after the company also named Michael Francis as the new CEO of Old Navy, its biggest brand.

The catch is Old Navy itself actually slipped 4%, its first sales decline in 12 quarters. So, the whole thesis really comes down to whether management can fix the biggest piece of the business while keeping the rest of the turnaround intact.

At roughly 8.3x forward earnings, Gap is still cheaper than a lot of retail peers even after today’s move. Do you think it's cheap for a reason, or is the market still underestimating how much this business has improved?