GAP

Gap Inc. (GAP) shares surged 25.3% over three months, outperforming the retail sector, driven by strong performance at its Gap and Banana Republic brands, improved merchandise margins, and disciplined inventory management. The company raised its FY26 adjusted EPS outlook to $2.35-$2.45 despite ongoing challenges at Old Navy and Athleta. Gap brand achieved its 11th consecutive quarter of positive comparable sales growth with a 10% increase in Q2, while the stock trades at an attractive 9.22X forward P/E multiple.

Gap Inc. (GAP) receives a #3 (Hold) rating from Zacks with a VGM Score of B. The stock has shown positive momentum with a 6.3% gain over the past four weeks, and six analysts revised earnings estimates upward in the last 60 days, increasing the Zacks Consensus Estimate to $2.41 per share. The company boasts a solid Momentum Style Score of B and an average earnings surprise of +2.1%.