Is GAP a good stock to buy right now?

Based on our 6-factor quantitative model, GAP INC (GAP) receives a "Reduce" rating with a composite score of 45.4/100. It is ranked #2,085 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 51/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for GAP?

GAP INC (GAP) has a "Reduce" rating and 2-star score. The composite score of 45.4 ranks it #2,085 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is GAP in?

GAP INC operates in the Consumer Discretionary sector (Retail industry) with a market cap of $9.05 billion. It is classified as a mid-cap stock.

Does GAP pay a dividend?

Yes, GAP pays a dividend with a current yield of 2.82%. For every $1,000 invested, you would receive approximately $28.20 in annual dividend income.

What is GAP's P/E ratio?

GAP has a trailing P/E ratio of 10.49x. The Consumer Discretionary sector average is 24.5x. This below-average P/E may indicate the stock is undervalued.

How profitable is GAP?

GAP's quality factor score is 50/100. Gross margin: 41.7%. ROE: 23.6% vs sector average 6.2%. Margins are moderate to low, reflecting competitive market dynamics.

How is GAP valued compared to peers?

GAP's value factor score is 56/100 (higher = cheaper). Key multiples: P/E 10.5x, EV/EBITDA 5.4x. Valuation is roughly in line with peers.

What is GAP's debt level?

GAP's debt-to-equity ratio is 239%. Sector average: 89%. Elevated leverage increases credit risk.

GAP has a beta of 1.44, meaning it amplifies market moves. Stability score: 39/100.

Does GAP have high short interest?

GAP's short interest factor score is 24/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

GAP Stock Analysis: Top Mid-Cap Reduce (Score 45.4/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
GAP	-0.23%	+6.87%	+13.71%	+2.73%	+38.42%	-	-	-
Industry Proxy XLY	+0.13%	+4.38%	-1.35%	-5.46%	-39.92%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	-0.16%	+3.26%	+13.37%	+3.10%	+8.90%	-	-	-
Alpha vs Sector	-0.36%	+2.48%	+15.06%	+8.19%	+78.34%	-	-	-

Metric	GAP	Benchmark
P/E Ratio	10.5x	-57%
EV/EBITDA	5.4x	+10%
Price / Book	2.5x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
CASY CASEYS GENERAL STORES INC	57	50	68	67	42.2x	16.9%	24.0%	3.8%	0.3%	123.0x	$27.2B	VS
TGT TARGET CORP	53	50	70	56	16.2x	20.7%	28.4%	3.4%	-0.7%	89.0x	$54.5B	VS
APEI AMERICAN PUBLIC EDUCATION INC	53	49	58	72	78.3x	4.6%	52.8%	2.1%	6.8%	32.0x	$1.1B	VS
LINC LINCOLN EDUCATIONAL SERVICES CORP	52	50	48	75	116.7x	5.6%	59.2%	2.3%	37.4%	147.0x	$1.3B	VS
FIVE FIVE BELOW, INC	52	50	56	73	105.5x	5.4%	32.5%	3.1%	26.5%	125.0x	$13.0B	VS
IMKTA INGLES MARKETS INC	51	50	51	62	17.4x	6.2%	23.9%	1.9%	0.4%	57.0x	$1.7B	VS
PRDO PERDOCEO EDUCATION Corp	51	50	70	57	14.2x	16.7%	100.0%	20.4%	27.1%	28.0x	$2.4B	VS
MCRI MONARCH CASINO & RESORT INC	51	50	66	47	16.7x	19.7%	24.5%	19.4%	11.5%	33.0x	$1.7B	VS
FCFS FirstCash Holdings, Inc.	49	50	29	66	34.7x	10.8%	50.2%	8.0%	26.6%	98.0x	$8.4B	VS
ESCA ESCALADE INC	48	50	65	51	15.2x	9.0%	26.1%	6.2%	8.4%	11.0x	$249M	VS
GAP GAP INC	45	50	56	51	10.5x	23.6%	41.7%	5.8%	13.8%	239.0x	$9.0B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.4%	0.4%	0.4%	0.4%	0.3%	0.4%	0.3%	0.4%	0.4%	0.4%	0.4%
Operating Margin %	0.1%	0.1%	0.1%	0.0%	-0.0%	0.0%	-0.1%	0.0%	0.1%	0.1%	0.1%
EBITDA Margin %	0.1%	0.1%	0.1%	0.1%	0.0%	0.1%	-0.0%	0.1%	0.1%	0.1%	0.1%
Net Margin %	0.1%	0.1%	0.1%	0.0%	-0.0%	0.0%	-0.0%	0.0%	0.1%	0.1%	0.0%
FCF Margin %	-0.0%	-	-	7.5%	-0.5%	0.7%	-1.1%	2.2%	4.1%	4.1%	7.7%
ROE %	0.2%	0.1%	0.3%	0.2%	-0.1%	0.1%	-0.3%	0.1%	0.3%	0.3%	0.2%
ROA %	0.1%	0.0%	0.1%	0.0%	-0.0%	0.0%	-0.0%	0.0%	0.1%	0.1%	0.1%
ROIC %	67.2%	7.2%	26.9%	16.3%	-1.6%	17.0%	-20.8%	5.2%	22.4%	31.2%	27.4%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.4%

0.3%

0.4%

0.3%

0.4%

Operating Margin %

0.1%

0.0%

-0.0%

0.0%

-0.1%

0.0%

0.1%

EBITDA Margin %

0.1%

0.0%

0.1%

-0.0%

0.1%

Net Margin %

0.1%

0.0%

-0.0%

0.0%

-0.0%

0.0%

0.1%

0.0%

FCF Margin %

-0.0%

7.5%

-0.5%

0.7%

-1.1%

2.2%

4.1%

7.7%

ROE %

0.2%

0.1%

0.3%

0.2%

-0.1%

0.1%

-0.3%

0.1%

0.3%

0.2%

ROA %

0.1%

0.0%

0.1%

0.0%

-0.0%

0.0%

-0.0%

0.0%

0.1%

ROIC %

67.2%

7.2%

26.9%

16.3%

-1.6%

17.0%

-20.8%

5.2%

22.4%

31.2%

27.4%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
	$14.9B	$15.1B	$14.9B	$15.6B	$16.7B	$13.8B	$16.4B	$16.6B	$15.9B	$15.5B	$15.8B
	—	$8.9B	—	—	—	—	—	—	—	—	—
	$6.2B	$6.2B	$5.8B	$5.4B	$6.6B	$4.7B	$6.1B	$6.3B	$6.1B	$5.6B	$5.7B
Gross Margin	41.7%	41.3%	38.8%	34.3%	39.8%	34.1%	37.4%	38.1%	38.3%	36.4%	36.2%
	—	$40M	—	—	—	—	—	—	—	—	—
Depreciation	—	$500M	$526M	$546M	$518M	$519M	$557M	$517M	$499M	$531M	$527M
Total Operating Expenses	—	$5.1B	—	—	—	—	—	—	—	—	—
	$1.2B	$1.1B	$560M	-$69M	$810M	-$862M	$574M	$1.4B	$1.5B	$1.2B	$1.5B
EBIT	$1.2B	$1.1B	$560M	-$69M	$810M	-$862M	$574M	$1.4B	$1.5B	$1.2B	$1.5B
EBITDA	$1.7B	$1.6B	$1.1B	$477M	$1.3B	-$343M	$1.1B	$1.9B	$2.0B	$1.7B	$2.1B
Operating Margin	7.9%	7.4%	3.8%	-0.4%	4.9%	-6.3%	3.5%	8.2%	9.3%	7.7%	9.7%
EBITDA Margin	11.2%	10.7%	7.3%	3.1%	8.0%	-2.5%	6.9%	11.3%	12.5%	11.1%	13.0%
	—	$87M	$90M	$88M	$492M	$250M	$76M	$73M	$74M	$75M	$59M
	—	$1.1B	—	—	—	—	—	—	—	—	—
Income Tax Expense	—	$293M	$54M	$63M	$67M	-$437M	$177M	$319M	$576M	$448M	$551M
	$861M	$844M	$502M	-$202M	$256M	-$665M	$351M	$1.0B	$848M	$676M	$920M
Net Margin	5.8%	5.6%	3.4%	-1.3%	1.5%	-4.8%	2.1%	6.0%	5.3%	4.4%	5.8%
	$0.63	$2.24	$1.36	$-0.55	$0.68	$-1.78	$0.93	$2.61	$2.16	$1.69	$2.24
Diluted EPS	$0.63	$2.20	$1.36	$-0.55	$0.68	$-1.78	$0.93	$2.61	$2.16	$1.69	$2.24
Weighted Avg Basic	—	376M	—	—	—	—	—	—	—	—	—
Weighted Avg Diluted	—	384M	—	—	—	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

$14.9B

$15.1B

$14.9B

$15.6B

$16.7B

$13.8B

$16.4B

$16.6B

$15.9B

$15.5B

$15.8B

—

$8.9B

—

$6.2B

$5.8B

$5.4B

$6.6B

$4.7B

$6.1B

$6.3B

$6.1B

$5.6B

$5.7B

Gross Margin

41.7%

41.3%

38.8%

34.3%

39.8%

34.1%

37.4%

38.1%

38.3%

36.4%

36.2%

—

$40M

—

Depreciation

—

$500M

$526M

$546M

$518M

$519M

$557M

$517M

$499M

$531M

$527M

Total Operating Expenses

—

$5.1B

—

$1.2B

$1.1B

$560M

-$69M

$810M

-$862M

$574M

$1.4B

$1.5B

$1.2B

$1.5B

EBIT

$1.2B

$1.1B

$560M

-$69M

$810M

-$862M

$574M

$1.4B

$1.5B

$1.2B

$1.5B

EBITDA

$1.7B

$1.6B

$1.1B

$477M

$1.3B

-$343M

$1.1B

$1.9B

$2.0B

$1.7B

$2.1B

Operating Margin

7.9%

7.4%

3.8%

-0.4%

4.9%

-6.3%

3.5%

8.2%

9.3%

7.7%

9.7%

EBITDA Margin

11.2%

10.7%

7.3%

3.1%

8.0%

-2.5%

6.9%

11.3%

12.5%

11.1%

13.0%

—

$87M

$90M

$88M

$492M

$250M

$76M

$73M

$74M

$75M

$59M

—

$1.1B

—

Income Tax Expense

—

$293M

$54M

$63M

$67M

-$437M

$177M

$319M

$576M

$448M

$551M

$861M

$844M

$502M

-$202M

$256M

-$665M

$351M

$1.0B

$848M

$676M

$920M

Net Margin

5.8%

5.6%

3.4%

-1.3%

1.5%

-4.8%

2.1%

6.0%

5.3%

4.4%

5.8%

$0.63

$2.24

$1.36

$-0.55

$0.68

$-1.78

$0.93

$2.61

$2.16

$1.69

$2.24

Diluted EPS

$0.63

$2.20

$1.36

$-0.55

$0.68

$-1.78

$0.93

$2.61

$2.16

$1.69

$2.24

Weighted Avg Basic

—

376M

—

Weighted Avg Diluted

—

384M

—

GAP INC (GAP) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does GAP INC Do?

The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, Athleta, and Banana Republic stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. As of December 31, 2021, the company had 2,835 company-operated stores and 564 franchise stores. It also provides its products through e-commerce sites. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California. GAP INC (GAP) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Richard Dickson and employs approximately 85,000 people, headquartered in San Francisco, California. With a market capitalization of $9.0B, GAP is one of the notable companies in the Consumer Discretionary sector.

GAP INC (GAP) Stock Rating — Reduce (April 2026)

As of April 2026, GAP INC receives a Reduce rating with a composite score of 45.4/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.GAP ranks #2,085 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, GAP INC ranks #201 of 442 stocks, placing it in the upper half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

GAP Stock Price and 52-Week Range

GAP INC (GAP) currently trades at $26.19. The stock lost $0.17 (0.6%) in the most recent trading session. The 52-week high for GAP is $29.36, which means the stock is currently trading -10.8% from its annual peak. The 52-week low is $16.99, putting the stock 54.1% above its annual trough. Recent trading volume was 696K shares, suggesting relatively thin trading activity.

Is GAP Overvalued or Undervalued? — Valuation Analysis

GAP INC (GAP) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 10.49x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 57%. The price-to-book ratio stands at 2.48x, versus the sector average of 1.99x. The price-to-sales ratio is 0.61x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, GAP trades at 5.42x EV/EBITDA, versus 4.91x for the sector.

Overall, GAP's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

GAP INC Profitability — ROE, Margins, and Quality Score

GAP INC (GAP) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 23.6%, compared to the Consumer Discretionary sector average of 6.2%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 7.0% versus the sector average of 2.5%.

On a margin basis, GAP INC reports gross margins of 41.7%, compared to 36.9% for the sector. The operating margin is 7.9% (sector: 3.8%). Net profit margin stands at 5.8%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 13.8% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

GAP Debt, Balance Sheet, and Financial Health

GAP INC has a debt-to-equity ratio of 239.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.72x, suggesting adequate working capital coverage. Cash and equivalents stand at $2.26B.

GAP has a beta of 1.44, meaning it is more volatile than the broader market — a $10,000 investment in GAP would be expected to move 44.0% more than the S&P 500 on any given day. The stability factor score for GAP INC is 39/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

GAP INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, GAP INC reported revenue of $14.86B and earnings per share (EPS) of $0.63. Net income for the quarter was $861M. Gross margin was 41.7%. Operating income came in at $1.18B.

In Q3 2026, GAP INC reported revenue of $3.94B and earnings per share (EPS) of $0.63. Net income for the quarter was $236M. Gross margin was 42.4%. Revenue grew 3.0% year-over-year compared to Q3 2025. Operating income came in at $334M.

In Q2 2025, GAP INC reported revenue of $3.73B and earnings per share (EPS) of $0.58. Net income for the quarter was $216M. Gross margin was 41.2%. Operating income came in at $292M.

In Q2 2026, GAP INC reported revenue of $3.73B and earnings per share (EPS) of $0.58. Net income for the quarter was $216M. Gross margin was 41.2%. Revenue grew 0.0% year-over-year compared to Q2 2025. Operating income came in at $292M.

Over the past 8 quarters, GAP INC has demonstrated a growth trajectory, with revenue expanding from $3.83B to $14.86B. Investors analyzing GAP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

GAP Dividend Yield and Income Analysis

GAP INC (GAP) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in GAP stock would generate approximately $$282.00 in annual dividend income. The net margin of 5.8% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.

GAP Momentum and Technical Analysis Profile

GAP INC (GAP) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

GAP vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

Within the Consumer Discretionary sector, GAP INC (GAP) ranks #201 out of 442 stocks based on the Blank Capital composite score. This places GAP in the upper half of all Consumer Discretionary stocks in our coverage universe. Key competitors and sector peers include MONARCH CASINO & RESORT INC (MCRI) with a score of 50.5/100, CASEYS GENERAL STORES INC (CASY) with a score of 57.3/100, INGLES MARKETS INC (IMKTA) with a score of 51.0/100, FIVE BELOW, INC (FIVE) with a score of 51.6/100, and TARGET CORP (TGT) with a score of 52.6/100.

Comparing GAP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GAP vs S&P 500 (SPY) comparison to assess how GAP INC stacks up against the broader market across all factor dimensions.

GAP Next Earnings Date

No upcoming earnings date has been announced for GAP INC (GAP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy GAP? — Investment Thesis Summary

The quantitative profile for GAP INC suggests caution. High volatility (stability score 39/100) increases portfolio risk.

In summary, GAP INC (GAP) earns a Reduce rating with a composite score of 45.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GAP stock.

Related Resources for GAP Investors

Explore more research and tools: GAP vs S&P 500 comparison, top Consumer Discretionary stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare GAP head-to-head with peers: GAP vs MCRI, GAP vs CASY, GAP vs IMKTA.

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GAP INC (GAP) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does GAP INC Do?

GAP INC (GAP) Stock Rating — Reduce (April 2026)

GAP Stock Price and 52-Week Range

Is GAP Overvalued or Undervalued? — Valuation Analysis

GAP INC Profitability — ROE, Margins, and Quality Score

GAP Debt, Balance Sheet, and Financial Health

GAP INC Revenue and Earnings History — Quarterly Trend

GAP Dividend Yield and Income Analysis

GAP Momentum and Technical Analysis Profile

GAP vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

GAP Next Earnings Date

Should You Buy GAP? — Investment Thesis Summary

Related Resources for GAP Investors

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