CleaRank Financial AI • AI-powered analysis using real-time market data from TwelveData
Analysis reviewed by Anthony Beachey, Financial Journalist. Data refreshed daily. Not financial advice.
The Gap, Inc. (GAP) is currently trading at $22.67, below its 200-day simple moving average of $23.36 but above its 50-day SMA of $21.58. The company recently reported a significant earnings beat, with EPS of $1.38 significantly exceeding the estimate of $0.49, leading to a 12.94% price increase. This strong performance contrasts with a neutral 14-day RSI of 53.3 and a MACD value of 0.47, indicating a lack of strong momentum in either direction. Fundamental analysis reveals a P/E ratio of 6.83, which is considerably lower than the sector median of 20.8, suggesting potential undervaluation. The company's profit margin stands at 8.14% and return on equity at 33.78%, both of which are strong. However, revenue growth has been negative at -2%. The company's debt-to-equity ratio of 1.45 is in line with the sector average.
GAP at a glance
The Gap, Inc. (GAP): Hold, 55/100 on CleaRank's AI score.
TrendMixed: the price is above its 50-day but below its 200-day moving average ($21.58 and $23.36).
EarningsGAP beat estimates in 2 of its last 3 quarters, and the stock rose the next day every time.
InsidersInsiders sold $107.7M and made no open-market purchases over the last 18 months.
ValuationP/E of 6.8 against 20.8 for the Consumer Cyclical sector: a discount to peers (-67%).
As of October 14, 2026, The Gap, Inc. (GAP) trades at $22.67. Wall Street's consensus target is $27.00 across 21 analysts. The 14-day RSI (daily closes) is 53, in neutral territory, and the price is above its 50-day simple moving average of $21.58.
Figures as of October 14, 2026.
Only on CleaRank
Figures we compute ourselves from GAP's own price, earnings and insider-filing history. Tap one to see it in context.
Trading at a notable discount to sector peers (-67%), which may indicate undervaluation or specific company headwinds.
GAP Financial Performance
Revenue vs. Earnings
Annual
Quarterly
Earnings Reality Check
In the last 3 quarters, GAP beat the analyst estimate 2 times; the stock rose in the first session after every beat.
GAP earnings surprises and the stock's reaction
Report
EPS estimate
EPS actual
Surprise
First session
5 sessions
Aug 27, 2026
$0.49
$1.38
+181.63%
+12.94%
+7.36%
May 28, 2026
$0.38
$0.38
+0.00%
-15.40%
-13.76%
Nov 20, 2025
$0.59
$0.62
+5.08%
+8.24%
+17.39%
The first session is the first full trading day on the news: the report day itself for a report before the open, the next day for one after the close. Surprise is actual EPS against the consensus estimate.
As of October 14, 2026, GAP has beaten the analyst EPS estimate in 2 of its last 3 reported quarters and rose in the first trading session after every one of those beats; its latest report, on August 27, 2026, came in 181.63% above the estimate and the stock moved +12.94% in the first session.
GAP Analysis
Company's Health3/5
12-Month Analyst Target+19.10% above price
Median of 21 analysts (12-month)
$27.00
AI Analyst Consensus ScoreHold
The Gap, Inc. (GAP) is currently trading above its 50-day SMA of $21.58 and its 20-day EMA of $22.56, indicating short-term positive momentum. However, the stock is trading below its 200-day SMA of $23.36, suggesting a longer-term bearish trend. The 14-day RSI is at 53.3, which is in neutral territory, and the MACD is at 0.47, also suggesting a lack of strong directional conviction. Key support levels are near the 50-day SMA, while resistance is observed around the 200-day SMA. Volume has been below average recently, with the latest volume at 4.35 million compared to an average of 5.29 million, indicating subdued investor interest. The current technical setup suggests a consolidation phase, with potential for a breakout or breakdown depending on future catalysts.
ProTips
The stock is trading below its 200-day SMA, suggesting caution for short-term traders until a clear upward trend is established.
Key Catalysts
BullishStrong Earnings Beat Exceeds Expectations
The Gap, Inc. reported EPS of $1.38, significantly beating the estimate of $0.49 by 181.63% in its August 2026 earnings report, leading to a positive stock price reaction.
Source: Company Earnings Report
BullishAttractive Valuation Metrics
The company's P/E ratio of 6.83 and P/S ratio of 0.52 are significantly lower than sector averages, suggesting potential undervaluation and a possible catalyst for price appreciation if market sentiment shifts.
Source: Fundamental Analysis
BearishNegative Revenue Growth
The Gap, Inc. is experiencing negative revenue growth of -2%, which poses a risk to future earnings potential and could limit stock price appreciation.
Source: Company Financials
Market Outlook
The base case for The Gap, Inc. (GAP) over the next 6-12 months suggests a period of consolidation with limited upside potential, driven by its attractive valuation and strong recent earnings performance. The company's ability to translate its strong profit margins into positive revenue growth will be critical for sustained stock appreciation. Potential catalysts for upside include a successful turnaround in sales strategy or a broader market rally benefiting consumer cyclical stocks. Conversely, downside risks include persistent negative revenue growth, increased competition, or a shift in consumer spending habits. The stock's position below its 200-day SMA also indicates that significant bullish momentum would be required to overcome longer-term technical resistance.
Key Statistics
Market Cap
7.96B
P/E Ratio
6.83
EPS (TTM)
3.32
Dividend Yield
3.04%
52 Week High
29.36
52 Week Low
18.11
As of October 14, 2026, GAP trades at $22.67, with a market value of $7.96B, a P/E ratio of 6.83 and a dividend yield of 3.04%.
The Gap, Inc. (GAP) presents a compelling valuation with a P/E ratio of 6.83, significantly lower than the sector median of 20.8. This suggests the stock may be undervalued relative to its peers. The company demonstrates strong profitability with a net profit margin of 8.14% and a strong return on equity of 33.78%, exceeding the sector average of 12.4%. Despite strong profitability, revenue growth has been negative at -2%, indicating challenges in top-line expansion. The debt-to-equity ratio of 1.45 is in line with the sector average, suggesting a manageable debt load. The current price-to-sales ratio of 0.52 is also below the sector median of 1.9, further supporting the notion of undervaluation. The company's ability to maintain profitability and manage its debt while facing revenue headwinds will be key to its future performance.
Earnings & Growth Analysis
The Gap, Inc. (GAP) demonstrated a significant earnings beat in its most recent report, with actual EPS of $1.38 far exceeding the analyst estimate of $0.49, a surprise of 181.63%. This strong performance resulted in a positive stock price reaction of 12.94%. Prior to this, the company met expectations in May 2026 and beat estimates in November 2025, indicating a generally positive trend in earnings surprises over the past year.
Key Risks
A primary risk for The Gap, Inc. (GAP) is its negative revenue growth of -2%, which could hinder future profitability and valuation expansion. The stock's current trading below its 200-day SMA presents a technical risk, suggesting potential for further downside if the trend persists.
Technical Indicators i
RSI (14-day)
53.30
MACD (12, 26)
0.467
SMA (50-day)
21.58
SMA (200-day)
23.36
Technical RatingBullish
RSI
Neutral
SMA Cross
Bearish
Price vs SMA
Bullish
MACD
Bullish
Moving averages show a lagging Death Cross (50-day: $21.58, 200-day: $23.36), price sits above the 50-day SMA but below the 200-day SMA - a mixed posture.
As of October 14, 2026, with GAP at $22.67, its 14-day RSI is 53.3 (neutral territory), its 50-day simple moving average is $21.58 and its 200-day is $23.36.
Calculated by CleaRank on daily closes as of October 14, 2026: Wilder's 14-day RSI, 50- and 200-day simple moving averages, MACD line (12, 26).
Market Correlations
How this stock moves relative to other assets
Based on 1 year of daily price data. Correlations may vary over different time periods.
S&P 500 (SPY)+0.42
Moderate correlation
Nasdaq 100 (QQQ)+0.36
Weak correlation
Bitcoin (BTC)+0.13
Weak correlation
Gold (XAU)-0.01
Weak correlation
As of October 14, 2026, GAP's 1-year correlation of daily returns is +0.42 with S&P 500 (SPY), +0.36 with Nasdaq 100 (QQQ), +0.13 with Bitcoin (BTC) and -0.01 with gold (XAU).
Check Custom Correlation
How does any other asset move with GAP? One year of daily closes, Pearson correlation.
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GAP Wall Street View
12-month price targets
Low $21.00Median $27.00 (+19.1%)High $42.00
Ratings
Buy 8Hold 13Sell 03 months ago: 11 of 19 buy
Recent rating actions
Recent analyst rating actions on GAP
Date
Firm
Action
Rating
Sep 9, 2026
BMO Capital
Initiates
Market Perform
Aug 31, 2026
Goldman Sachs
Maintains
Buy
Aug 28, 2026
Wells Fargo
Maintains
Equal-Weight
Aug 28, 2026
UBS
Maintains
Buy
Aug 28, 2026
Barclays
Maintains
Equal-Weight
Aug 28, 2026
TD Cowen
Maintains
Buy
As of October 14, 2026, 21 Wall Street analysts cover GAP: 8 rate it a buy or strong buy, 13 a hold and 0 a sell or strong sell. Their 12-month price targets range from $21.00 to $42.00, with a median of $27.00, 19.1% above the price of $22.67.
Source: TwelveData analyst consensus. Targets and ratings belong to the analysts, not to CleaRank.
GAP Trade Plans
Specific entry, exit, and risk management levels
Select Your Trade Bias
Risk Tolerance
Conservative2%Aggressive
Portfolio Value
$
Position Size: Enter portfolio size →
Entry Strategies pick an entry style
Conservative
$22.44
Slight discount to current
Wait for small dip
Aggressive
$22.67
At current price
Enter now if confident
Risk Management
STOP LOSS
$21.68
MAX LOSS
-3.4%
Volatility-Adjusted Stop Loss
Calculated based on RSI (53.3) and current market volatility
These levels come from GAP's moving averages and recent volatility, not from a forecast. Educational levels, not financial advice; the full disclaimer is at the foot of the page.
Growth of $10,000
A $10,000 investment in GAP in October 2016 would be worth about $8,631 today, compared with about $36,506 for the same investment in the S&P 500 benchmark. This is price change only; dividends paid along the way would add to it.
Compare with Another Ticker
GAP Drawdowns & Recovery
Worst fall, last 10 years
-83.1%
January 2018 to April 2020
Recovery
Not yet
still 35.0% below the January 2018 peak
From the 10-year high
-35.0%
highest close, January 2018
1-year holds that gained
52%
of every 1-year window
As of October 14, 2026, GAP's worst peak-to-trough fall over the last 10 years was -83.1% (January 2018 to April 2020); it is still 35.0% below that peak, and 52% of 1-year holding periods ended with a gain.
From weekly closing values. A drawdown is the fall from the highest value reached so far to a later low.
Monte Carlo Projection (10yr)
CleaRank's 10-year Monte Carlo simulation projects that a $10,000 investment in GAP today could grow to about $12,544 by 2036 in the base case, with a 90th-percentile outcome near $95,163 and a 10th-percentile outcome around $1,653. The simulation models price only; at today's 3.04% yield, dividends would add to these figures. Projections are statistical simulations, not guarantees.
GAP Stock Price Prediction: 2030
CleaRank's simulation projects a price near $24.82 for GAP by 2030 in the base case, from $22.67 today (1.1x over 4 years). The 10th-percentile path ends near $6.89. These are outcomes of a Monte Carlo simulation run on GAP's historical return distribution, not price targets, and they assume no dividends are reinvested.
GAP simulated price paths by year
Year
10th percentile
Base case
90th percentile
2027
$12.22
$23.19
$44.01
2028
$9.58
$23.72
$58.71
2029
$8.00
$24.26
$73.62
2030
$6.89
$24.82
$89.42
2031
$6.06
$25.39
$106
Method: a lognormal simulation of GAP's own volatility and capped historical trend, re-run daily; base case is the median path, the outer columns the 10th and 90th percentiles.
As of October 14, 2026, GAP insiders reported 30 open-market sales worth $107.7M and no open-market purchases over the last 18 months; grants and option exercises are not counted.
Recent insider transactions in GAP
Date
Insider
Type
Shares
Value
Oct 6, 2026
FISHER WILLIAM SYDNEY
Director and Beneficial Owner of more than 10% of a Class of Security
Sell
933.7K
$22.1M
Oct 6, 2026
GRUBER JULIE GROLLMUS
Officer
Sell
27.5K
$648.7K
Sep 30, 2026
FISHER WILLIAM SYDNEY
Director and Beneficial Owner of more than 10% of a Class of Security
Sell
66.3K
$1.5M
Sep 29, 2026
FISHER WILLIAM SYDNEY
Director and Beneficial Owner of more than 10% of a Class of Security
Grant
21.6K
-
Aug 21, 2026
DICKSON RICHARD L
Chief Executive Officer
Grant
226.2K
-
Jun 30, 2026
DICKSON RICHARD L
Chief Executive Officer
Grant
13.3K
-
Jun 30, 2026
FISHER ROBERT J.
Director and Beneficial Owner of more than 10% of a Class of Security
Grant
20.8K
-
Jun 30, 2026
FISHER ROBERT J.
Director and Beneficial Owner of more than 10% of a Class of Security
Grant
23.0K
-
Jun 30, 2026
FISHER WILLIAM SYDNEY
Director and Beneficial Owner of more than 10% of a Class of Security
Grant
20.8K
-
Jun 30, 2026
FISHER WILLIAM SYDNEY
Director and Beneficial Owner of more than 10% of a Class of Security
Grant
23.0K
-
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Frequently Asked Questions
How has The Gap, Inc. performed in recent earnings reports?
The Gap, Inc. (GAP) delivered a strong earnings beat in its latest report (August 2026), with EPS of $1.38 significantly surpassing the estimate of $0.49. This resulted in a 12.94% stock price increase. The company also met expectations in May 2026 and beat estimates in November 2025.
What are the key risks facing The Gap, Inc. stock?
Key risks for The Gap, Inc. (GAP) include negative revenue growth of -2%, which could impact future performance. Technically, the stock trading below its 200-day SMA indicates potential for further downward pressure.
How does The Gap, Inc. compare to its sector averages?
The Gap, Inc. (GAP) trades at a P/E ratio of 6.83, significantly lower than the sector median of 20.8, and a P/S ratio of 0.52 compared to the sector median of 1.9. Its ROE of 33.78% is substantially higher than the sector average of 12.4%. However, its revenue growth is negative (-2%) against a sector average of 7.2%.
What is the outlook for The Gap, Inc. stock in the next 12 months?
The outlook for The Gap, Inc. (GAP) is cautiously neutral. While strong earnings and attractive valuation metrics provide some support, the negative revenue growth and neutral technical momentum suggest limited near-term upside. The median analyst target price of $27.00 indicates a potential for modest gains, but significant headwinds could prevent a substantial rally.
Are there any significant insider transactions for The Gap, Inc.?
Insiders of The Gap, Inc. (GAP) are net sellers, with total sales of $107.7 million versus no reported purchases. Actual officer and director selling totals $20.2 million.
What are The Gap, Inc.'s projected earnings and revenue growth?
For the current year, The Gap, Inc. (GAP) is projected to grow earnings by 13.1% to $2.41, with revenue growth estimated at 1.00% to $15.5 billion. Looking to next year, EPS is expected to grow to $2.64, and revenue is projected to increase by 3.00% to $16 billion.
Does GAP pay a dividend?
Yes. As of October 14, 2026, GAP's dividend yield is 3.04%, or about $0.69 per share a year at the current price of $22.67. Yields move with the share price and with changes to the payout.
Is GAP in an uptrend?
Not clearly. The Gap, Inc. (GAP) trades at $22.67, above its 50-day but below its 200-day moving average ($21.58 and $23.36). Its 14-day RSI on daily closes is 53.3, in neutral territory.
What is the analyst price target for GAP?
As of October 14, 2026, the 21 Wall Street analysts covering GAP have 12-month targets from $21.00 to $42.00, with a median of $27.00, 19.1% above the current price of $22.67. 8 rate it a buy or strong buy, 13 a hold and 0 a sell or strong sell. Three months ago 11 of 19 rated it a buy.
What is GAP's biggest drop in the last 10 years?
The Gap, Inc. (GAP)'s worst peak-to-trough fall over the last 10 years was -83.1%, from January 2018 to April 2020. It has not regained that peak yet and is still 35.0% below it. Over the same period, 52% of 1-year holding periods ended with a gain.
