Gap (GPS, $26.22) gets rating boost at J.P. Morgan
Shares of clothing retailer Gap got a rating upgrade from analysts at J.P. Morgan.
J.P. Morgan analysts boosted their rating on the stock to overweight from neutral . They also hiked their price target on the shares to $30 a share from $22.
J.P. Morgan analyst Matthew Boss said, "Looking forward, we see an embedded call option on Gap/Banana Republic with zero value attributed to the two brands today," adding, "despite a potential near-term catalyst path with the Kanye West 'YZY Gap' launch in fiscal 2021 as a brand accelerator for Gap and a rotation back to workwear in light of vaccine news, a catalyst at Banana Republic, consistent with our 3-wave retail 'recovery.'"
According to Boss, Gap has underperformed the S&P 500 by 50% over the past three years, thereby supporting its upside potential.
J.P. Morgan increased its third-quarter same-store-sales estimate to -0.2%, vs. consensus estimate of -2.5%. J.P. Morgan estimates point to a third-quarter earnings of 40 cents per share vs. the consensus estimate of 31 cents.
GAP's RSI Indicator ascending out of oversold territory
The RSI Oscillator for GAP moved out of oversold territory on March 16, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 28 similar instances when the indicator left oversold territory. In of the 28 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 20, 2026. You may want to consider a long position or call options on GAP as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GAP just turned positive on March 23, 2026. Looking at past instances where GAP's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
GAP moved above its 50-day moving average on April 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for GAP crossed bullishly above the 50-day moving average on April 20, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GAP advanced for three days, in of 286 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 192 cases where GAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GAP broke above its upper Bollinger Band on April 09, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.561) is normal, around the industry mean (7.686). P/E Ratio (12.512) is within average values for comparable stocks, (28.811). Projected Growth (PEG Ratio) (1.562) is also within normal values, averaging (2.246). Dividend Yield (0.025) settles around the average of (0.028) among similar stocks. P/S Ratio (0.666) is also within normal values, averaging (31.938).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
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General Information
an operator of stores that retail clothing, accessories and personal care products
Industry ApparelFootwearRetail
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