GET DAILY SIGNALSGap (GPS, $33.55) posts surprise Q1 profit
Gap posted a surprise fiscal-first-quarter profit, and quarterly revenue that doubled from the year-ago period. The clothing company also raised its full-year guidance.
For the quarter ended May 1, Gap’s adjusted earnings came in at 48 cents a share, while analysts polled by FactSet expected adjusted loss of -5 cents a share.
Revenue rose to $3.99 billion, from $2.1 billion a year ago. Analysts polled by FactSet expected $3.44 billion.
Comparable-store sales climbed +35% year-over-year at Old Navy Global, +29% at Gap Global and +27% at Athleta. However, same-store sales at Banana Republic fell -4% year-on-year.
For the full-year, Gap boosted its guidance on GAAP diluted earnings per share to a range of $1.55 to $1.70. Analysts polled by FactSet were expecting $1.43 a share.
The company projects net sales growth between the low to mid 20% range for fiscal 2022, compared with its earlier guidance of mid-to-high teens percent.
GAP sees MACD Histogram just turned negative
GAP saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 14, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In 42 of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for GAP moved out of overbought territory on September 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In 20 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.
The Momentum Indicator moved below the 0 level on October 20, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GAP as a result. In 69 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 86%.
GAP moved below its 50-day moving average on November 03, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +5.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where GAP advanced for three days, in 229 of 296 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
GAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 31 (best 1 - 100 worst), indicating very 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 53 (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 Valuation Rating of 63 (best 1 - 100 worst) indicates that the company is fair valued 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 (1.976) is normal, around the industry mean (1.860). P/E Ratio (6.478) is within average values for comparable stocks, (12.547). Projected Growth (PEG Ratio) (1.247) is also within normal values, averaging (0.517). Dividend Yield (0.032) settles around the average of (0.065) among similar stocks. P/S Ratio (0.499) is also within normal values, averaging (0.652).
The Tickeron PE Growth Rating for this company is 82 (best 1 - 100 worst), pointing to worse than average 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 Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 97 (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 86, 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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