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The Gap, Inc is an apparel retail business based in the US. The Gap shares (GPS) are listed on the NYSE and all prices are listed in US Dollars. The Gap employs 129,000 staff and has a trailing 12-month revenue of around USD$14.1 billion.
Since the stock market crash in March caused by coronavirus, The Gap's share price has had significant positive movement.
Its last market close was USD$19.32, which is 11.70% up on its pre-crash value of USD$17.06 and 219.87% up on the lowest point reached during the March crash when the shares fell as low as USD$6.04.
If you had bought USD$1,000 worth of The Gap shares at the start of February 2020, those shares would have been worth USD$359.91 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,107.23.
|Latest market close||USD$19.32|
|52-week range||USD$5.26 - USD$20.34|
|50-day moving average||USD$17.5089|
|200-day moving average||USD$12.2928|
|Wall St. target price||USD$18|
|Dividend yield||USD$0.97 (13.98%)|
|Earnings per share (TTM)||USD$2.143|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-10-13)||-0.10%|
|1 month (2020-09-18)||15.07%|
|3 months (2020-07-20)||55.68%|
|6 months (2020-04-20)||146.43%|
|1 year (2019-10-18)||14.45%|
|2 years (2018-10-19)||-23.58%|
|3 years (2017-10-20)||-28.34%|
|5 years (2015-10-20)||-28.84%|
Valuing The Gap stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of The Gap's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
The Gap's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 9x. In other words, The Gap shares trade at around 9x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
The Gap's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.1492. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into The Gap's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
The Gap's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$324 million.
The EBITDA is a measure of a The Gap's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$14.1 billion|
|Gross profit TTM||USD$8 billion|
|Return on assets TTM||-0.96%|
|Return on equity TTM||-35.32%|
|Market capitalisation||USD$7.2 billion|
TTM: trailing 12 months
There are currently 29.8 million The Gap shares held short by investors – that's known as The Gap's "short interest". This figure is 14% down from 34.7 million last month.
There are a few different ways that this level of interest in shorting The Gap shares can be evaluated.
The Gap's "short interest ratio" (SIR) is the quantity of The Gap shares currently shorted divided by the average quantity of The Gap shares traded daily (recently around 8.0 million). The Gap's SIR currently stands at 3.71. In other words for every 100,000 The Gap shares traded daily on the market, roughly 3710 shares are currently held short.
However The Gap's short interest can also be evaluated against the total number of The Gap shares, or, against the total number of tradable The Gap shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case The Gap's short interest could be expressed as 0.08% of the outstanding shares (for every 100,000 The Gap shares in existence, roughly 80 shares are currently held short) or 0.1524% of the tradable shares (for every 100,000 tradable The Gap shares, roughly 152 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against The Gap.
Find out more about how you can short The Gap stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like The Gap.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 10.38
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and The Gap's overall score of 10.38 (as at 10/01/2020) is excellent – landing it in it in the 4th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like The Gap is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 1.61/100
The Gap's environmental score of 1.61 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that The Gap is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 3.58/100
The Gap's social score of 3.58 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that The Gap is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 2.19/100
The Gap's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that The Gap is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. The Gap scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that The Gap hasn't always managed to keep its nose clean.
|Total ESG score||10.38|
|Total ESG percentile||3.96|
|Environmental score percentile||1|
|Social score percentile||1|
|Governance score percentile||1|
|Level of controversy||3|
We're not expecting The Gap to pay a dividend over the next 12 months.
The Gap's shares were split on a 3:2 basis on 22 June 1999. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your The Gap shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for The Gap shares which in turn could have impacted The Gap's share price.
Over the last 12 months, The Gap's shares have ranged in value from as little as $5.26 up to $20.34. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while The Gap's is 1.5847. This would suggest that The Gap's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
The Gap, Inc. operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. Its products include denim, tees, fleece, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores in Asia, Europe, Latin America, the Middle East, and Africa. As of February 1, 2020, the company had 3,345 company-operated stores; and 574 franchise stores, as well as online. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.
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