GAP · NYSE · STOCK
Gap (GAP) Stock Analysis
$23.22
52W $18.11 – $29.36
59/100
$8.36B
6.8
2.03
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is GAP Bullish or Bearish?
Bullish.
Innellis AI committee rates Gap Inc. (GAP) Buy with a composite score of 59/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +15.75 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -4.25 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Value Analyst sees a compelling case — p/e of 6.5 is inexpensive for the broad market. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 6.5 is inexpensive for the broad market — Value
- ROE of 33.1% shows genuine earnings power backing the valuation — Value
- EPS growing 43.8% YoY — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- Bollinger bandwidth of 21.6% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
59/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 30%
of 178 Consumer Cyclical peers
Value Analyst
bullish
70
/ 100 · High confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 6.5 is inexpensive for the broad market
Growth Analyst
bullish
70
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 43.8% YoY
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ MACD histogram positive -- bullish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 21.6% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
54
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 59.2 to 59.2.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
58.8
Neutral
MACD Histogram
0.102
Bullish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Hh Hl
Support
$22.03
Resistance
$23.40
Bollinger %B
0.73
Inside Bands
Price vs Moving Averages
EMA 9
$23.08
Above
EMA 21
$22.46
Above
EMA 50
$21.77
Above
EMA 200
$22.41
Above
Fundamental Analysis
Valuation
97
Growth
70
Profitability
66
Financial Health
69
Cash Flow
70
Valuation
P/E Ratio
6.8×
P/B Ratio
2.12×
PEG Ratio
0.15
Dividend Yield
2.97%
52W High
$29.36
52W Low
$18.11
Quality & Growth
ROE
2146.8%
ROA
646.0%
Gross Margin
4326.0%
Operating Margin
1098.8%
Revenue Growth YoY
—
Debt / Equity
1.45
AI Fundamental Assessment
P/E ratio of 6.8 (inexpensive relative to a 15-40x range); Price-to-book of 2.1x; PEG ratio of 0.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 21.5%; Return on assets of 6.5%; Net margin of 8.1%; Gross margin of 43.3%; Current ratio of 1.82 (healthy short-term liquidity); Debt-to-equity of 1.45; Free cash flow per share is positive (3.07); Most recent quarter beat estimates by 7.0%; 2 consecutive earnings beats; EPS growth accelerating (-15.6% -> +36.8% QoQ); Average YoY EPS growth of -8.8%; Analyst estimates rising over recent quarters
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