NYSE:GPS

Gap (GPS)

20.21
-0.01 (0.05%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
49 watching
0
Investor Insights
star iconJun 26, 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 facing challenges, particularly reflected in its recent Q1 net sales, which saw a significant decline of 12%, and same-store sales dropping by 11%. Despite these setbacks, some analysts are optimistic about the company's potential, noting the stock trades at a forward price-to-earnings ratio of 11x and has shown improvement in specific segments like Banana Republic. Mixed quarterly results included an earnings beat, although revenues fell short, leading to concerns about tariff impacts on margins. Nevertheless, the positive sentiment stemming from the conference call suggests that there could be a recovery ahead, leading some to consider this as an opportune time to invest. Close attention to the stock price is advised, as trailing stop recommendations suggest a cautious but hopeful outlook for investors.

consensus icon
Consensus
Mixed
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Valuation
Fair Value
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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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