GAP Stock Analysis: Buy, Sell, or Hold?
GAP - The Gap, Inc.
$27.98
0.28 (1.01%)
▲
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Mar 05, 2026
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2 traders called GAP this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: GAP shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: GAP shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$40.74
Based on 6.5% avg growth
INTRINSIC VALUE TODAY
$25.30
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 12.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: GAP is currently trading at $27.98, which is considered extended relative to its 30-day fair value range of $26.01 to $27.63. The stock's valuation (Forward PE: 11.8) is in line with its historical norms (12.7). Remarkably, the market is currently pricing in an annual earnings decline of 2.3% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, GAP is in a strong uptrend. The price is approaching resistance at $28.39. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: GAP has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, GAP is in a strong uptrend. The price is approaching resistance at $28.39. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: GAP has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$26.01 -
$27.63
Company Quality Score
63/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
57.1%
Protect Your Profits
Holding GAP? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($30.12)
Fair Price Analysis
30-Day Fair Range
$26.01 -
$27.63
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$25.79
Resistance Level
$28.39
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
11.82
Wall Street Target
$30.12
(+8.7%)
Revenue Growth (YoY)
3.0%
Earnings Growth (YoY)
-13.9%
Profit Margin
5.6%
Valuation Discount vs History
-2.3% cheaper
PE vs Historical
11.8 vs 12.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-2.3%
(market-implied from PE analysis)
1-Year Target
$27.06
(-2%)
2-Year Target
$26.44
(-5%)
3-Year Target
$25.83
(-7%)
3-Yr Target (if PE normalizes)
(PE: 12→13)
$27.75
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 9.0%)
$67.61
(+144%)
Base:
(SPY PE: 11.8, Growth: 9.0%)
$35.84
(+29%)
Bear:
(PE: 10.0, Growth: 9.0%)
$30.47
(+10%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (12x PE) as earnings recover.
Trailing PE: 12.07 | Current EPS (TTM): $2.22
Bull Case
$31.11
(+12%)
Analyst growth 5.5%, PE expands to 13.3
Base Case
$28.28
(+2%)
Market implied 5.5%, PE stable at 12.1
Bear Case
$18.22
(-34%)
Severe decline -20.0%, PE contracts to 10.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 11.8 to 12.7
Stabilization Target:
$29.75
(+7.4%)
PE Expansion Potential:
+7.4%
Last updated: January 30, 2026 5:39 PM ET
Data refreshes hourly during market hours. Next update: 6:39 PM
Data refreshes hourly during market hours. Next update: 6:39 PM
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Technical Signals Check
Is GAP showing a specific setup today?
Insider Activity (6 Months)
0
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Robert J Fisher
SELL
500000 shares
2025-09-24
William Sydney Fisher
SELL
200000 shares
2025-09-15
William Sydney Fisher
SELL
243064 shares
2025-09-04
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