NASDAQ · STOCK
Gap Inc.
$20.08
52W $18.11 – $29.36
63/100
$7.23B
7.8
2.02
Is GAP Bullish or Bearish?
Bullish.
Innellis AI committee rates Gap Inc. (GAP) Buy with a composite score of 63/100
, based on 6 analysts with 83% agreement.
Last updated August 01, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +11.93 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 — -8.07 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 primary driver is p/e of 7.5 is inexpensive for the broad market. The main limiting factor is sector concentration is already high (hhi 2535.03). The committee is constructive but not yet at full conviction.
Bull & Bear Case
Bull Case
- P/E of 7.5 is inexpensive for the broad market — Value
- ROE of 26.5% shows genuine earnings power backing the valuation — Value
- Dividend yield of 3.4% pays you to wait — Value
- 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
- Both daily and weekly trends are bearish — strong multi-timeframe downtrend.
- Lower Highs / Lower Lows structure confirms bearish price action.
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 August 01, 2026
Overall Committee Score
63/100
Agreement
83%
Analysts
6
Conviction
High
Sector Rank
Top 3%
of 124 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 7.5 is inexpensive for the broad market
Growth Analyst
bullish
62
/ 100 · Moderate confidence
Strong, accelerating growth with consistent execution
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ MACD histogram positive -- bullish momentum
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
70
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.38 across 8 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2535.03)
Investment Thesis Evolution
Committee score strengthened from 59.4 to 63.1.
- Conviction strengthened -- analysts aligned more closely.
- Committee agreement increased sharply from 50% to 83%.
- New bearish signals: 2 appeared.
- Bullish support removed: 2 signal(s) disappeared.
- New bullish signals: 3 appeared.
- Bearish pressure eased: 4 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst, Technical Analyst.
Analyst-level changes:
- Macro Analyst: stance neutral->bullish; score 58->70 (+12); +1 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Technical Analyst: stance neutral->bullish; score 52->61 (+10); +1 bullish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-07-31 to 2026-08-01 (1 day apart).
Technical Analysis
RSI (14)
54.7
Neutral
MACD Histogram
0.156
Bullish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Lh Ll
Support
$20.06
Resistance
$22.07
Bollinger %B
0.66
Inside Bands
Price vs Moving Averages
EMA 9
$19.94
Above
EMA 21
$19.93
Above
EMA 50
$20.72
Below
EMA 200
$22.94
Below
Fundamental Analysis
Valuation
97
Growth
58
Profitability
1
Financial Health
66
Cash Flow
37
Valuation
P/E Ratio
7.8×
P/B Ratio
2.02×
PEG Ratio
0.67
Dividend Yield
0.03%
52W High
$29.36
52W Low
$18.11
Quality & Growth
ROE
21.5%
ROA
6.5%
Gross Margin
40.5%
Operating Margin
8.4%
Revenue Growth YoY
—
Debt / Equity
1.54
AI Fundamental Assessment
P/E ratio of 7.8 (inexpensive relative to a 15-40x range); Price-to-book of 2.0x; PEG ratio of 0.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.2%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.4%; Current ratio of 1.81 (healthy short-term liquidity); Debt-to-equity of 1.54; Free cash flow margin of 0.7% (thin cash generation); Free cash flow per share is positive (3.48); Most recent quarter beat estimates by 1.3%; EPS growth accelerating (-27.4% -> -15.6% QoQ); Analyst estimates falling over recent quarters
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