For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.37; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.05 to $2.34 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.
Bank of New York Mellon Corp reduced its stake in The Gap, Inc. (NYSE:GAP – Free Report) by 2.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 3,132,774 shares of the company’s stock after selling 63,160 shares during the period. Bank of New York Mellon Corp owned about 0.86% of GAP worth $75,813,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP during the fourth quarter valued at approximately $26,000. Plato Investment Management Ltd purchased a new position in shares of GAP in the fourth quarter worth $28,000. V Square Quantitative Management LLC purchased a new position in shares of GAP in the fourth quarter worth $31,000. EverSource Wealth Advisors LLC increased its stake in shares of GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after buying an additional 4,483 shares during the period. Finally, Atlas Capital Advisors Inc. bought a new stake in GAP during the 4th quarter valued at $203,000. Institutional investors own 58.81% of the company’s stock.
GAP Stock Performance Shares of GAP stock opened at $19.56 on Wednesday. The stock has a fifty day moving average of $20.90 and a 200 day moving average of $24.21. The Gap, Inc. has a 52 week low of $18.11 and a 52 week high of $29.36. The firm has a market capitalization of $7.04 billion, a price-to-earnings ratio of 7.70, a PEG ratio of 1.17 and a beta of 2.04. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41.
GAP (NYSE:GAP – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a net margin of 6.25% and a return on equity of 21.13%. The company had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. During the same period in the previous year, the firm posted $0.51 earnings per share. The firm’s revenue for the quarter was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, research analysts expect that The Gap, Inc. will post 2.34 earnings per share for the current year.
GAP Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be paid a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.6%. GAP’s payout ratio is presently 27.56%.
Analysts Set New Price Targets Several equities research analysts have weighed in on the stock. TD Cowen dropped their price target on shares of GAP from $32.00 to $26.00 and set a “buy” rating for the company in a research report on Monday, May 18th. Evercore set a $20.00 price objective on shares of GAP and gave the company an “in-line” rating in a research report on Friday, May 29th. Weiss Ratings downgraded shares of GAP from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 7th. The Goldman Sachs Group dropped their target price on shares of GAP from $32.00 to $28.00 and set a “buy” rating for the company in a report on Friday, May 29th. Finally, Bank of America cut their target price on GAP from $29.00 to $26.00 and set a “neutral” rating on the stock in a research note on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $28.00.
Read Our Latest Report on GAP
GAP Company Profile (Free Report)
Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.
Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.
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On July 08, 2026, Gap Inc (GAP) shares fell 3.8%, bringing the current price to $18.35. The stock has been under pressure, with a 52-week range of $18.11 to $29
Key Takeaways Athleta's sales fell 12% to $270M, with comps down 11% as legacy inventory clearance weighed on Q1 results.Gap says 2026 is a transition year for Athleta, focused on product, positioning and merchandising.New Journey travel collection and Elation leg silhouettes showed strong engagement and sell-through. Gap Inc.’s (GAP - Free Report) turnaround has gained traction across much of its portfolio, but Athleta remains the notable exception. While Gap, Old Navy and Banana Republic continue to post positive comparable sales growth, Athleta is still in the early stages of a multiyear rebuilding effort. Management has been clear that 2026 is a transition year for the brand, with the priority on rebuilding product, brand positioning and merchandising rather than pursuing near-term sales growth. The key question for investors is whether these foundational changes can translate into sustainable momentum over the coming quarters.
The first-quarter results highlighted the work still ahead. Athleta's net sales declined 12% year over year to $270 million, while comparable sales fell 11%, missing the company's expectations. Management attributed the weakness primarily to efforts to clear legacy inventory, a process that has taken longer than anticipated and weighed on top-line performance. Despite the sales pressure, Gap noted that introducing a cleaner assortment remains essential before the brand can return to more consistent growth.
Encouragingly, early signs suggest the strategy may be gaining traction beneath the surface. Gap reported positive customer response to Athleta's new Journey travel collection in select locations, with strong engagement and sell-through rates. New leg silhouettes across core franchises such as the Elation line have also performed well, giving management greater confidence in its future product direction. The company plans to continue clearing older inventory through the second quarter before introducing a broader assortment that better reflects Athleta's long-term positioning in the fall season.
While Athleta is likely to remain a drag on Gap's overall performance in the near term, management expects gradual improvement in the second half as new products gain a larger share of the assortment. Leadership continues to view Athleta as an important long-term growth engine and is investing in product, talent and creative capabilities to strengthen the brand's competitive position. The pace at which these initiatives translate into stronger comparable sales will likely determine whether Athleta can become a meaningful contributor to Gap's next phase of growth.
GAP’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have lost 31.9% in the past six months compared with the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, GAP trades at a forward price-to-earnings ratio of 7.90X compared with the industry’s average of 14.44X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GAP’s current fiscal-year sales and earnings implies year-over-year growth of 1.2% and 9.9%, respectively. For the next fiscal year, the consensus estimate indicates a 1.9% rise in sales and 10.8% growth in earnings. The company’s EPS estimate for both fiscal years has remained stable in the past seven days.
Image Source: Zacks Investment Research
Key PicksRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.
Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.36% and 34.3%, respectively, from the year-ago figures.
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.22; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.04 to $2.34 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. ("Gap" or the "Company") (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap's stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways GAP launched an AI-driven initiative to modernize marketing and enhance customer engagement.Gap partnered with Google Cloud to build a unified data foundation for personalization.GAP is using AI tools and Athena by Zeta to improve targeting, campaigns and marketing efficiency. The Gap, Inc. (GAP - Free Report) continues to benefit from strong brand momentum and growing market share across its key banners, driven by the steady execution of its brand reinvigoration strategy. The company’s transformation efforts are centered on four key priorities, including maintaining financial and operational discipline, revitalizing its brands, strengthening its platform and supply-chain capabilities, and fostering a high-performance culture.
GAP unveiled a major AI-driven initiative aimed at modernizing its marketing operations and enhancing customer engagement across its portfolio of brands. Through the adoption of Artificial Intelligence, advanced data analytics and agentic technologies, the company is reshaping its shared marketing organization into a more agile, scalable and real-time growth platform. The initiative seeks to deliver highly personalized customer experiences, strengthen owned marketing channels, improve customer retention and foster greater integration across the marketing ecosystem.
A key component of the initiative is Gap's collaboration with Google Cloud to create a unified, AI-ready data foundation that integrates customer and product intelligence. This platform is expected to support faster personalization, improved decision-making and continuous optimization across marketing content, customer activations and e-commerce operations.
Gap has teamed up with Publicis Sapient to build a consumer-focused, AI-driven operating model. The collaboration is aimed at integrating content development, campaign execution, commerce and customer intelligence into a more connected ecosystem, while improving efficiency across its workforce, processes, technology infrastructure and data capabilities. To power its AI capabilities, Gap is utilizing Google Cloud technologies such as Agent Studio, Agent Engine and Gemini models, along with advanced image and video-generation tools, including Nano Banana and Veo. These tools are intended to streamline workflows and support large-scale content creation.
Additionally, Gap is working with Zeta Global to build an AI-powered marketing stack centered on Athena by Zeta, an intelligence platform designed to connect customer data, decision-making and marketing execution. Athena's predictive and agentic capabilities will help coordinate audience targeting, creative development, campaign activation and optimization, enabling more personalized customer experiences and faster campaign deployment. By combining its established brand heritage with advanced AI infrastructure and data-driven capabilities, Gap aims to create a faster, more responsive and customer-centric marketing model that supports long-term growth.
Image Source: Zacks Investment Research
This Zacks Rank #3 (Hold) company’s shares have lost 15.7% in the past three months against the industry’s 3.2% growth.
3 Retail Picks You Can’t MissWe have highlighted three better-ranked stocks, namely Genesco Inc. (GCO - Free Report) , Designer Brands Inc. (DBI - Free Report) and Levi Strauss & Co. (LEVI - Free Report) .
Genesco, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current financial-year EPS indicates growth of 55.2% from the year-ago figure. GCO delivered an average earnings surprise of 3.8% in the trailing four quarters.
Designer Brands, designer and producer of footwear and accessories, currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 112.8%, on average.
The Zacks Consensus Estimate for Designer Brands’ current financial-year sales indicates growth of 0.5% from the year-ago figure.
Levi Strauss, designer and marketer of jeans, casual wear and related accessories, currently has a Zacks Rank of 2. LEVI delivered an average earnings surprise of 21.4% in the trailing four quarters.
The consensus estimate for Levi Strauss’ current financial-year sales indicates growth of 5.2% from the year-ago figure.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.31; value investors should take notice.
For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $2.33 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.
On June 17, 2026, Gap Inc GAP shares fell 3.6% today, bringing the current price to $20.94. The stock has experienced a 52-week range between $18.69 and $29.36, indicating significant volatility over the past year.
GF Value™ verdict: The current price is $20.94, which is 7.0% below the GF Value™ of $22.52.GF Score™: 71/100, indicating above-average performance relative to peers.Most notable signal: Insiders sold $22.5 million worth of shares in the last three months without any buying activity. Is GAP Overvalued or Undervalued? Gap Inc GAP currently trades at $20.94, which is below its GF Value™ estimate of $22.52, suggesting that the stock is undervalued by approximately 7.0%. This margin of safety may present a potential opportunity for investors looking for stocks that could appreciate in value. The GF Valuation label indicates that the stock is fairly valued, which means that while there is a slight undervaluation, it is important to consider the broader context of the company's financial health and market conditions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, investors should be cautious, as the company's financial strength scores 6/10, indicating that while the valuation appears attractive, there could be underlying risks that warrant further investigation. A thorough analysis of the company’s financial statements, competitive position, and market environment is essential before making any decisions based on valuation alone.
How Does GAP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.2x 12.5x Forward P/E 8.8x N/A Gap Inc's current P/E ratio of 8.2x is significantly below its 5-year median P/E of 12.5x, indicating that the stock is trading at a discount compared to its historical valuation. This P/E analysis agrees with the GF Value™ verdict that suggests the stock is undervalued. The forward P/E of 8.8x also reaffirms that the market may not fully account for the company's earnings potential in the near future.
What Does GAP's GF Score™ Tell Us? Metric Rating GF Score™ 71 Financial Strength 6/10 Profitability 6/10 Growth 3/10 Valuation 9/10 Momentum 5/10 The GF Score™ of 71/100 indicates that Gap Inc is performing above average relative to its peers. The strongest area is the Valuation rank, scoring 9/10, which aligns with the undervaluation indicated by the GF Value™. However, the Growth rank of 3/10 suggests that the company may face challenges in expanding its earnings and revenue in the future. A balance of strong valuation metrics with weaknesses in growth underscores the need for cautious optimism regarding the stock's potential performance.
What Are Insiders Doing with GAP Stock? Recent insider activity has seen a significant sell-off, with insiders selling $22.5 million in shares over the past three months. This lack of buying activity from insiders may signal a lack of confidence in the company’s near-term prospects or a strategic move to realize profits. Such patterns can often indicate that insiders might not anticipate significant price increases in the short term, which can be a red flag for potential investors.
While insider selling does not inherently indicate a negative outlook, it is crucial for investors to be aware of these trends as they may influence market sentiment around the stock.
What This Means for Investors Based on the GF Value™ assessment, Gap Inc GAP is currently undervalued with its shares trading below intrinsic value. However, potential investors should consider the broader context, including financial strength and insider activity, before making any commitments. The valuation appears attractive, but caution is advised due to the uncertainties surrounding growth and insider sentiment.
For the complete analysis, visit the Gap Inc GAP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GAP's GF Score™?
GAP's GF Score™ is 71/100, indicating above-average performance relative to its peers in the market.
Is GAP overvalued or undervalued?
GAP is currently undervalued, with a GF Value™ of $22.52 compared to its trading price of $20.94.
What is GAP's P/E ratio?
GAP's P/E ratio is 8.2x, which is significantly below its historical median of 12.5x, suggesting that the stock is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. ("Gap" or the "Company") (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap's stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways Gap delivered its ninth straight quarter of positive comps, led by a 10% gain at the namesake brand.Denim, women's and men's apparel drove growth, while kids and baby returned to positive sales momentum.Campaigns and collaborations boosted cultural relevance as Gap targets high-single-digit comps in FY26. Gap Inc. (GAP - Free Report) continues to demonstrate that its multiyear turnaround strategy is gaining traction. The apparel retailer delivered its ninth consecutive quarter of positive comparable sales growth in the first quarter of fiscal 2026, highlighting the effectiveness of its brand reinvigoration efforts. By combining product innovation, culturally relevant marketing and disciplined execution, Gap has transformed itself from a struggling apparel chain into one of the stronger performers in the specialty retail space. The latest results suggest that the company is not only sustaining momentum but also broadening its appeal across categories and customer segments.
The namesake Gap brand was the standout performer in the quarter, with comparable sales rising 10% on top of a 5% increase in the year-ago period. Net sales climbed 10% year over year to $796 million, marking another quarter of robust growth. Management noted strength across women's apparel and men's categories, while the kids and baby business returned to growth. Denim remained a key growth engine, helping the brand gain additional market share. Gap also expanded its customer file and achieved its third consecutive quarter of reduced discounting, underscoring stronger demand and improved pricing discipline.
Beyond the numbers, Gap's turnaround is increasingly being fueled by brand relevance and cultural engagement. Collaborations with Victoria Beckham, Harlem's Fashion Row and Awake New York, along with high-profile activations at Coachella and the Met Gala, helped strengthen the brand's connection with younger consumers. The company's "Get Loose" campaign featuring Grammy-nominated artist Young Miko generated nearly 1.5 billion media impressions, while its Coachella activation created more than 300 million social and press impressions. These initiatives are reinforcing Gap's position at the intersection of fashion, music and culture, a strategy management believes can drive sustainable long-term growth.
Looking ahead, management remains optimistic about Gap's trajectory. The company expects the brand to deliver high-single-digit comparable sales growth for fiscal 2026, supported by continued strength in denim, expanded product categories, store remodels and the relaunch of its iconic fragrance business. While macroeconomic uncertainties and competitive pressures remain, Gap's consistent sales growth, expanding customer base and improving merchandise margins indicate that the turnaround story still has room to run. The key question for investors is whether the brand can maintain its cultural relevance and operational discipline as it scales this momentum through the remainder of the year.
GAP’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have lost 19.8% in the past six months compared with the industry’s decline of 5.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, GAP trades at a forward price-to-earnings ratio of 8.68X compared with the industry’s average of 15.38X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GAP’s current fiscal-year sales and earnings implies year-over-year growth of 1.6% and 9.4%, respectively. For the next fiscal year, the consensus estimate indicates a 1.9% rise in sales and 11.3% growth in earnings. The company’s EPS estimate for both fiscal years has remained stable in the past seven days.
Image Source: Zacks Investment Research
Key PicksRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.
Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.36% and 31.7%, respectively, from the year-ago figures.
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
American Eagle Outfitters Inc. NYSE: AEO has posted consecutive earnings beats. Yet even after delivering another better-than-expected quarter on May 28, shares sold off as concerns about weakness in the core American Eagle brand and pressure on second-quarter gross margin overshadowed stellar performance at Aerie.
Since then, the stock has recovered its losses. Where shares head next is likely to depend on Aerie's ability to maintain its momentum after posting 25% comparable sales growth, whether the American Eagle brand can regain its footing, and how much pressure tariffs and other costs ultimately place on margins.
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Aerie's Strength Helps Offset American Eagle's WeaknessAmerican Eagle reported first-quarter earnings of 14 cents per share, a sharp improvement from the 29-cent-per-share loss reported a year earlier. Earnings exceeded Wall Street estimates by 3 cents. Revenue rose nearly 10% from the prior-year period to $1.2 billion, topping expectations by more than $10 million. The results marked the company's fourth consecutive quarter of earnings and revenue beats.
Total comparable sales increased 8%. Gross margin expanded 860 basis points to 38.2%, while merchandise margin improved 710 basis points. The results benefited from an inventory write-down recorded in the prior-year quarter, which weighed on margins.
Aerie and its activewear-focused OFFLINE brand were the company's standout performers. Revenue for the brands increased 34% year over year to $481 million.
On the earnings call, CEO Jay Schottenstein said he was "extremely pleased" with the continued momentum at Aerie and OFFLINE, citing strong demand across categories and channels, compelling product offerings, high customer engagement, and growing brand awareness.
The flagship American Eagle brand faced challenges during the quarter. Revenue and comparable sales each declined about 2% from a year earlier to roughly $697 million. Results across categories were mixed, with the men's business delivering its third consecutive quarter of positive performance while certain areas of the women's business, including bottoms and seasonal categories, remained under pressure.
The company said it has already begun refining its product assortment ahead of the important back-to-school season.
Second-Quarter Gross Margin Faces PressureAmerican Eagle also provided guidance calling for second-quarter operating income of between $45 million and $50 million, and comparable sales growth in the mid- to high-single digits. Gross margin is projected to decline from the previous year as the company faces a 150- to 200-basis-point tariff headwind, as well as markdown pressure at the American Eagle brand.
Momentum at Aerie and OFFLINE is expected to continue in Q2, with comparable sales growth in the high teens to low twenties. On the flip side, the American Eagle brand is expected to remain under pressure, with comparable sales ranging from flat to down low single digits. Schottenstein did note, however, “While May started slowly for the AE brand, we're encouraged by the improvement in the business that we have seen over the last few weeks.”
For the full year, the retailer expects operating income of $390 million to $410 million, supported by mid-single-digit comparable sales growth. Gross margin is expected to increase year over year.
Multiple Analysts Lower Price Targets Following Q1 ReportDespite notching another earnings and revenue beat, investors appeared focused on the challenges facing the American Eagle brand and the expected decline in second-quarter gross margin.
At least six analysts lowered their price targets following the report. The stock currently carries a consensus Hold rating and a 12-month price target of $20.36. Price targets range from a low of $16 to a high of $31.
The average price target has declined steadily since early January, when it stood above $28. Even so, it remains well above the sub-$10 consensus target seen a year ago.
AEO's 2026 Pull Back Follows Major RallyThe Q1 report and the wave of analyst price-target cuts that followed sent the stock down roughly 12%, extending an already difficult stretch for shareholders. Year to date, shares are down by over 30%.
However, the recent weakness follows a powerful rally in the second half of 2025. Helped by a string of positive earnings reports, shares climbed from a 52-week low of less than $10 in July to a 52-week high above $28 in early January. Despite the pullback over the last several months, the stock remains up around 77% over the past year.
American Eagle Outfitters, Inc. (AEO) Price Chart for Wednesday, June, 24, 2026
The pullback has also made the stock's valuation more attractive. American Eagle Outfitters' price-to-earnings ratio sits around 11x, well below the retail industry average of 16.3x. However, the stock is not the cheapest among some of its peers. Abercrombie & Fitch Co. NYSE: ANF trades at roughly 8.3x earnings, while The Gap Inc. NYSE: GAP trades at about 8.5x.
While shares of American Eagle have recovered from their post-earnings decline, investors are still weighing the strength of Aerie against ongoing challenges at the American Eagle brand. In the upcoming quarters, attention is likely to remain focused on whether Aerie's momentum can continue, whether the American Eagle brand can regain its footing, and how much pressure tariffs, markdowns, and other costs ultimately place on margins.
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NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways GAP posted Q1 FY26 adjusted EPS of $0.38 and revenues of $3.50B, both below consensus.GAP comps rose 2%, positive for a ninth straight quarter; Old Navy and Banana Republic grew.GAP gross margin fell to 40.5% on tariffs; adjusted operating margin declined 230 basis points. The Gap, Inc. (GAP - Free Report) delivered adjusted earnings of 38 cents per share in the first quarter of fiscal 2026, down 25.5% year over year and missing the Zacks Consensus Estimate of 39 cents. Net sales of $3.50 billion rose 1% year over year but fell short of the consensus mark of $3.53 billion.
Comparable sales (comps) increased 2% for the ninth straight quarter of positive comps, led by a standout performance at the Gap brand. Still, tariff-related pressure and higher spending on growth initiatives weighed on adjusted profitability.
Gap’s shares fell nearly 4% in the after-hours session yesterday on soft first-quarter results and trimmed sales view for fiscal 2026. Shares of this Zacks Rank #4 (Sell) company have lost 9.1% compared with the industry’s 0.2% drop over the past six months.
GAP Brands' ResultsResults across brands were uneven, with strength concentrated in the Gap banner and more pressure in Athleta. Gap Global posted net sales of $796 million, up 10% year over year, alongside a 10% comps gain, reflecting momentum in key destination categories such as denim, fleece, and kids and baby.
Old Navy Global generated $2 billion of net sales, up 1% year over year, while comps increased 1%. Banana Republic Global recorded net sales of $431 million, up 1%, with comps up 2%. Athleta remained soft, with net sales down 12% to $270 million and comparable sales down 11%.
Gap brand's revenues surpassed our model's estimate of $745.3 million, while Banana Republic and Athleta brands' revenues lagged our estimates of $434.4 million and $301.1 million, respectively. Old Navy's revenues were in line with our model's estimate.
Gap Margins & ExpensesGross margin was 40.5%, down 130 basis points from the year-ago quarter, yet management said the outcome exceeded expectations. Merchandise margin declined 100 basis points, including an anticipated net tariff impact of about 200 basis points, implying underlying improvement supported by better inventory management and strength at the Gap brand. Average unit retail rose across all brands.
Adjusted operating income was $182 million and adjusted operating margin was 5.2%, down 230 basis points year over year, mainly reflecting the net tariff impacts. We had expected adjusted gross margin contraction of 150 basis points to 40.3% and adjusted operating margin decrease of 220 basis points to 5.3%.
On the expense line, reported operating expense was $972 million, or 27.8% of net sales. Adjusted operating expense was $1.2 billion, translating to 35.3% of net sales, as spending stepped up for the loyalty relaunch, investments tied to beauty and accessories, and continued work on technology and next-generation capabilities.
Gap Financial HealthThe company ended the fiscal first quarter with $2.6 billion in cash, cash equivalents and short-term investments, up 15% from the year-ago quarter, while ending inventory of $2.1 billion was flat year over year.
Management returned $464 million to shareholders via repurchases and dividends in the quarter. This included an accelerated share repurchase program and additional open-market repurchases, remaining $599 million under its present repurchase authorization. It has approved second-quarter dividends of $0.175 per share, up 6% from the prior-year rate. Free cash flow was $78 million in the quarter, after $135 million of capital expenditures.
GAP Outlook Turns More Cautious on SalesFor fiscal 2026, the company trimmed the top-line view, now expecting net sales growth of 1-2% year over year, reflecting a more tempered outlook for Old Navy based on early-year trends. It expects Old Navy comps to be flat to up 1% for the fiscal year. Even with that moderation, management raised fiscal 2026 adjusted earnings outlook to $2.30-$2.40 per share, citing tailwinds from interest income, tax rate and share count. Earlier, management had expected sales growth of 2-3% and adjusted earnings of $2.20-$2.35 for the current fiscal year.
GAP still projects adjusted operating margin in the range of 7.3-7.5% and adjusted operating expenses, as a percentage of sales, nearly flat year over year at 33.5% seen in fiscal 2025. This reflects $150 million in cost savings to boost efficiency and effectiveness by managing inflation and funding growth initiatives. Capital expenditures are expected to be about $650 million in investments with respect to mainly stores, technology and supply-chain initiatives.
The outlook assumes a 10% tariff rate under Section 122 for inventory received after Feb. 24, 2026 through July 24, 2026, followed by a reversion for the rest of the year to the IEEPA-level tariff rates included in the prior outlook. This is likely to result in about $80 million of net tariff relief to gross profit and operating income, or nearly 50 basis points of gain to gross margin and operating margin in fiscal 2026.
The benefit is likely to be concentrated in the second and third quarters based on the timing of receipts. Gap is reserving the full anticipated benefit to offer flexibility to business for the rest of the year, with nearly half intended to offset the potential impact of higher fuel costs and the balance for potential changes in the promotional and competitive landscape. Net store closures are likely to remain almost flat year over year.
For the second quarter of fiscal 2026, GAP expects net sales to be flat to down 1% year over year and gross margin to be flat to down 50 basis points, with Old Navy pressured by seasonal-category softness that management attributed primarily to execution in dresses and certain other seasonal assortments Operating expenses, as a percentage of sales, to deleverage about 110-120 basis points from 33.4% seen in the year-earlier quarter.
Key Retail Stock PicksKohl's Corporation (KSS - Free Report) , which is a department store chain, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KSS delivered a trailing four-quarter earnings surprise of 72.3%, on average. The Zacks Consensus Estimate for KSS’ current financial-year sales indicates a drop of 1% from the year-ago number.
Levi Strauss & Co. (LEVI - Free Report) , which is a designer and marketer of jeans, casual wear and related accessories, currently carries a Zacks Rank #2 (Buy).
LEVI delivered a trailing four-quarter earnings surprise of 21.4%, on average. The Zacks Consensus Estimate for Levi Strauss’ current financial-year sales indicates growth of 5.2% from the year-ago number.
Fossil Group, Inc. (FOSL - Free Report) , which is a designer and marketer of fashion accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current financial-year earnings is expected to rise 87.6% from the corresponding year-ago reported figure. FOSL delivered an earnings surprise of 86.4% in the last reported quarter.
New York, New York--(Newsfile Corp. - May 29, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into The Gap, Inc. ("The Gap, Inc.") (NYSE:GAP) concerning potential violations of the federal securities laws.
The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
If you suffered a loss on your The Gap, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299469
Gap Inc. reported 1% Q1 revenue growth to $3.5 billion, missing Wall Street estimates, while Old Navy comparable sales came in at just 1% versus the 3% analysts expected -- shares fell over 15% in a single session.
, /PRNewswire/ -- Investors who held Gap Inc. (NYSE: GAP) shares lost more than 15% of their investment on May 28-29, 2026, after the company reported Q1 FY2026 revenue of $3.5 billion -- up 1% year-over-year and below analyst expectations. Shareholders who lost money on GAP are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
If you purchased Gap Inc. shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the GAP Investigation
Q: Who is eligible to participate in the GAP investigation?A: Investors who purchased GAP stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: How much did GAP stock drop?A: Shares fell more than 15% after the company reported Q1 revenue that missed analyst estimates as management highlighted a slower start to the year and cut its full-year sales outlook. Investors who purchased shares at higher prices may be entitled to recovery.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Gap Inc. made materially false or misleading statements regarding its revenue outlook, brand-level performance trends, and inventory challenges. When actual Q1 results and a lowered full-year revenue forecast were disclosed, the stock price declined sharply.
Q: What do GAP investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my GAP shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought GAP and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions.
Gap Inc CEO Richard Dickson said the turnaround at Athleta is taking longer than expected, but the retailer remains committed to rebuilding the struggling activewear brand.
"Athleta is an important brand in the portfolio," Dickson said on CNBC's "Mad Money" on Friday. "We are in the rebuild year."
On Thursday, Gap reported weaker-than-expected results for Athleta, where first-quarter sales fell 12% to $270 million and comparable sales declined 11%. On the company's earnings call, management described Athleta as a "slower rebuild," warning second-quarter trends are expected to remain similar to the first quarter. Athleta's comp sales also were down 10% and 11% in the fourth and third quarters of last fiscal year, reflecting its challenges.
Athleta's woes aren't the only problem facing Gap right now.
Shares of the retailer plunged 17% Friday after weakness at Old Navy — Gap's largest brand by revenue — overshadowed strength elsewhere in the portfolio. Old Navy posted 1% comparable sales growth in the quarter, below analyst expectations of 3%, as softer demand in seasonal categories like dresses weighed on results and prompted Gap to lower its full-year sales outlook.
Still, Dickson said Gap sees a path to recovery for Athleta under the brand's CEO Maggie Gauger, who joined last August and has been leading an overhaul of the business. During the pandemic era, Athleta had been a buzzy growth driver for Gap, which also owns Old Navy and its namesake brand.
"She streamlined the assortment considerably, which is resulting in better [average unit retail], better margins, even with a challenging top line," Dickson said.
Gap has also reshaped leadership, improved creative execution and begun rolling out new merchandise that management believes is resonating better with shoppers.
"We've gotten some new merchandise in. It's checking really well," Dickson said. "It's small, they're early reads, but we do believe that this brand has strength to deliver."
Athleta, which ranks as the fifth-largest activewear brand in the category, remains an important long-term growth opportunity for Gap, according to Dickson.
"It's on us to prove that," Dickson said, adding that the company expects "slight improvement" in the second half of the year.
"We believe we'll continue to chip away at this and find the growth pattern for Athleta," he said.
Gap Inc. NYSE: GAP delivered a mixed first-quarter report Thursday after the bell, slightly missing Wall Street's earnings and revenue expectations for the second consecutive quarter while lowering its full-year sales outlook due to weaker-than-expected performance at its Old Navy brand.
Although the company, which is in the midst of a multiyear turnaround, raised its full-year earnings guidance, investors seemed more concerned about the slowing top-line growth, sending shares down about 17% following the report.
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Gap's Q1 Results Reflect Uneven Brand PerformanceGap reported adjusted diluted earnings per share (EPS) of 38 cents, down from 51 cents a year ago and a penny below Wall Street's expectations. Revenue rose to $3.5 billion, up 1% year over year, but fell roughly $28 million short of analyst estimates.
GAP Today
$21.92 +0.06 (+0.27%)
As of 03:59 PM Eastern
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52-Week Range$18.68▼
$29.36Dividend Yield3.19%
P/E Ratio8.63
Price Target$28.71
Comparable sales (comps) increased 2%, marking the retailer's ninth consecutive quarter of positive comp growth, while gross margin of 40.5% exceeded the company's guidance.
On the earnings call, CEO Richard Dickson acknowledged that performance was uneven across the company's portfolio during the quarter.
"Overall, at the company level, the quarter was in line with our expectations. However, results at the brand level were more varied, reflecting both the different stages of their transformation and some brand-specific dynamics," Dickson said.
Three of Gap's four brands posted positive year-over-year comps. Gap's namesake brand remained a standout performer, with comps rising 10% and extending its streak of positive comps to 10 consecutive quarters. Banana Republic also continued to gain traction, posting 2% comps growth and marking its fourth straight quarter of positive comps.
Old Navy, the company's largest brand, posted 1% comps growth but fell short of expectations due to a weaker-than-expected customer response to its seasonal dress assortment. Athleta remained a sore spot, with comps declining 11% as the brand continued working through legacy inventory and broader turnaround efforts.
Lower Sales Outlook Overshadows Higher EPS GuidanceThe weaker-than-expected performance at Old Navy prompted the company to lower its sales guidance, though it raised its EPS forecast to reflect favorable interest income, tax, and share-count assumptions.
Net sales are now expected to be up 1% to 2% year over year, down from the company's earlier guidance of 2% to 3%. Meanwhile, the company raised its adjusted EPS outlook to $2.30 to $2.40 per share, up from its earlier estimate of $2.20 to $2.35 per share.
The company also expects roughly $80 million in net tariff relief, though it is reserving about half to offset the potential impact of higher fuel costs and the remainder to respond to changes in the promotional and competitive environment.
Gap also issued guidance for the second quarter, expecting net sales to be flat to down 1% over the previous year, with gross margin flat to down 50 basis points.
Gap's Volatile Year Continues Following Earnings ReportInvestors were clearly disappointed with the report, sending shares sharply lower. The move added to what has already been a bumpy year for the stock as investors reacted to developments related to the retailer's turnaround efforts.
The Gap, Inc. (GAP) Price Chart for Friday, June, 12, 2026
Despite the volatile backdrop, investors responded positively to improving results across much of Gap's portfolio early in the year, sending shares to a 52-week high above $29 on Jan. 9. However, the stock tumbled more than 14% following the company's fourth-quarter earnings report in early March after results came in just shy of expectations.
The stock has struggled to regain momentum since then. Ahead of Thursday's report, shares were trading just under $25. Following the sell-off, they are now trading below $21. Over the last three months, shares have fallen roughly 25%, while the stock is down about 18% year to date.
Analysts Remain Optimistic Despite the PullbackWall Street has remained largely optimistic on Gap, though analyst sentiment has been somewhat mixed in recent months, and at least three analysts lowered their price target following the latest earnings report.
The stock carries a Moderate Buy consensus rating. Among the 18 analysts covering the company, 12 rate the stock a Buy, while six have Hold ratings. The average 12-month price target is just under $29, implying more than 35% upside from recent trading levels.
The recent pullback has also lowered Gap's valuation. Shares currently trade at about 10X earnings, below the broader retail industry average P/E ratio of around 17X. The stock's price-to-sales ratio of less than 0.5 is also well below the industry average of approximately 1.1.
Gap trades at a lower earnings multiple than American Eagle Outfitters Inc. NYSE: AEO, which carries a P/E ratio of around 14X, though above Abercrombie & Fitch Co.'s NYSE: ANF multiple of roughly 7X. On a price-to-sales basis, Gap trades slightly above American Eagle and modestly below Abercrombie, which just reported strong Q1 earnings.
Gap's latest quarter offered evidence that its turnaround remains on track, particularly at the namesake Gap brand. However, as it was a second consecutive earnings and revenue miss, combined with a lower sales forecast, the positives were overshadowed. Going forward, investors will be watching whether the challenges at Old Navy prove temporary while monitoring signs that Athleta's turnaround efforts are gaining traction.
Should You Invest $1,000 in GAP Right Now?Before you consider GAP, you'll want to hear this.
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Athleta's expected recovery has been pushed out for three straight years, as an attempt to widen its appeal ended up “appealing to no one in particular.”
LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260531916899/en/
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Nov. 1, 2025, Gap had around 3,500 stores in more than 35 countries, of which 2,497 were company-operated. Net store closures for fiscal 2025 are likely to be about 35.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.15; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.01 to $2.31 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.
Gap Inc. offers compelling value after a ~15% YTD and ~25% 12-month decline to a single-digit P/E multiple. I reiterate my buy rating on GAP, seeing margin improvement and a fundamental reset despite a disappointing Q1 and lowered top-line guidance. GAP is shifting from heavy discounting to improved supply planning, aiming to reduce inventory gluts and support healthier pricing.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
For investors, two apparel names currently are providing two very different pitches. When it comes to Gap (NYSE:GAP | GAP Price Prediction) and Lululemon Athletica (NASDAQ:LULU), which one belongs in a retirement-focused portfolio right now?
After running both through the lenses that matter most for income-oriented investors — yield, valuation and risk profile — the answer is more decisive than the brand prestige gap would suggest.
Dimension 1: When It Comes to Yield and Income, Gap Wins Decisively This one is short. Gap pays a quarterly dividend of 17.5 cents per share, raised this year from 16.5 cents, which itself was a step up from the 15-cent quarterly rate paid through 2024. The current annualized payout works out to 67 cents per share, and management just authorized a new $1.0 billion share repurchase, with roughly $599 million still remaining on the program.
Lululemon? No dividend. Capital returns flow exclusively through buybacks, including $1.2 billion repurchased in FY2025. Buybacks are useful, but they do not fund a retiree’s monthly bills. For an income-seeking investor, this dimension is settled before the analysis even begins.
Dimension 2: When It Comes to Valuation, Gap Wins Again Gap trades at a trailing P/E of 8 and a forward P/E of 9, with a price-to-sales of just 0.49. Lululemon, even after a brutal repricing, sits at a trailing P/E of 10 and forward P/E of 10, with price-to-sales near 1.4.
Lululemon is undeniably cheaper than it has been in years. The stock is down 36% year to date and 58% over the past year, currently trading near $128. But cheaper than its own history is not the same as cheap. Gap is the absolute lower-multiple stock, supports the multiple with a dividend, and has analysts pointing to a target of $27.67 against today’s $21.47.
Dimension 3: When It Comes to Volatility and Risk, Gap Wins on Stability Retirees care about drawdowns. Lululemon’s beta of 0.90 looks tame on paper, but the realized volatility tells a different story: a 58% five-year decline alongside an interim co-CEO structure after Calvin McDonald’s departure, 550 basis points of gross margin compression, persistent Americas comp weakness, and FY2026 EPS guidance of $12.10 to $12.30, an implied decline from $13.26.
Gap is moving the other direction. Management just raised the adjusted EPS guide to $2.30 to $2.40, marked a 9th consecutive quarter of positive comparable sales, and runs a stable bench under CEO Richard Dickson. Yes, Athleta remains a drag and online sales slipped 2% year over year, but the Gap brand alone posted a 10% comp in the latest quarter. Dickson framed the capital-return posture plainly: “increasing capital returns to shareholders, reflecting the growing strength of our balance sheet.”
Lululemon’s CEO message reads more defensively. Interim co-CEO Meghan Frank emphasized that “Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America.” That is a turnaround sentence, not a momentum sentence.
The Verdict For retirement-focused investors, Gap wins, and it is not particularly close. It pays and raises a dividend, trades at a single-digit forward multiple, just raised guidance, and operates with a fortress balance sheet. Three dimensions, three wins.
Lululemon has a place, just not in this portfolio. Growth-oriented investors with a 10-year horizon and a stomach for execution risk get a once-rare entry point into a premium brand with 30% China Mainland comp growth and 17% international revenue growth. That is a different bet for a different investor. The retiree writing checks against this portfolio takes Gap.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of The Gap, Inc. (NYSE: GAP).
Shareholders who purchased shares of GAP during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance. JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
DEADLINE: January 1, 2999 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/the-gap-inc-loss-submission-form/?id=187549&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of GAP during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is January 1, 2999. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Nov. 1, 2025, Gap had around 3,500 stores in more than 35 countries, of which 2,497 were company-operated. Net store closures for fiscal 2025 are likely to be about 35.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. GAP has a Momentum Style Score of A, and shares are up 1.2% over the past four weeks.
For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.32 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GAP should be on investors' short list.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. ("Gap" or the "Company") (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap's stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
