NYSE:GPS

Gap (GPS)

19.64
+0.63 (3.31%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
49 watching
0
Investor Insights
star iconJul 27, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

Gap Inc. (GPS-N) is currently navigating a challenging financial landscape, with Q1 net sales declining by 12% and same-store sales down by 11%. While these figures indicate a struggle in the leisurewear segment, some analysts highlight a potential buying opportunity, noting that the stock trades at a forward P/E of 11x and has delivered on comparable store sales. There are mixed signals from the latest earnings report, which showed an earnings beat but a revenue miss. Although management has acknowledged pressures from Trump's tariffs affecting margins, there was a positive response from investors post-conference call. Analysts previously regarded Gap as a top pick, with recommendations to adjust stop-loss levels, indicating confidence in recovery despite the current volatility.

consensus icon
Consensus
Mixed
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Valuation
Fair Value
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LULU, LULU
PARTIAL BUY

Has had a 114% move in the last year. Plays into the value/price consumer theme. Probably a big beneficiary of a strong US$. Have been going through a significant restructuring which is starting to show margin improvement. You have to be careful with consumer discretionary. You could consider buying a small position and then come in again after earnings are reported on Thursday.

DON'T BUY
Clothing retailing is a very fickle space. Cotton prices have doubled, which have affected everyone by squeezing margins. Recent sales have been very poor internationally.
COMMENT
Retail stores. Up 20% from the beginning of the year. He always worries about the Gap because it is so fashion driven. When they get it wrong nobody would be caught dead in their clothes. When they get it right and make a ton of money.
DON'T BUY
A stock that has had huge cycles over the last decade. A lot of this comes down to fashion and style. They have a lot of competition and the younger consumer doesn't seem to be embracing them as they did previously.
BUY
Model price is $27.50.
DON'T BUY
New management has brought the sales up. Feels the world doesn't need another Gap, Banana Republic, etc. and they are reaching market saturation. In the near term, they'll be able to build sales, but in the longer term, they'll reach saturation unless they do something dramatic.
PAST TOP PICK
(Was a top pick on July 14/03.Down 3.6%.)Still likes.A major turnaround is happening.
TOP PICK
(Was a top pick on Jun 9/03. Up 7%.) Selection is based on a theme of consumer discretionary. Great value.
TOP PICK
New CEO. A turn around story. Have posted terrific numbers. Top picks are based on consumer discretionary spending due to lower interest rates.
DON'T BUY
Could drop further. They have to attract customers back.
DON'T BUY
DON'T BUY
Reasonably priced but could drop further.
DON'T BUY
Fashion is fickle. Not a fan.
WEAK BUY
A leader in specialty stores. Good growth. Undervalued.
HOLD
Missed on their merchandising styles. New CEO
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