Value
8.2/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 9.3 |
| P/S | 10.0 |
| EV/EBITDA | 8.2 |
| Fwd P/E | 9.5 |
| PEG | 5.9 |
| Analyst target | 7.5 |
- ▸Forward P/E: 8.3x
- ▸PEG: 1.26
- ▸Attractively valued
GAP · Why this verdict
Why Gap, Inc. (The) (GAP) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.7/10
ConfidenceHIGH
MacroRISK_OFF
Per-dimension breakdown
Quality
6.0/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 9.2 |
| ROA | 4.5 |
| Gross margin | 4.1 |
| Op margin | 5.1 |
| Net margin | 3.1 |
| Current ratio | 6.4 |
| FCF quality | 6.8 |
| Moat | 5.6 |
| Piotroski F | 8.9 |
- ▸Excellent ROE: 28%
- ▸Strong Piotroski F-Score: 8/9
Growth
6.3/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 2.7 |
| EPS growth | 10.0 |
Momentum
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 3.5 |
| OBV | 10.0 |
| MA position | 2.2 |
| Volume | 1.5 |
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA but MA still rising (+1.7%/30d) — pullback in uptrend, not confirmed weakness
Sentiment
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.4 |
| Price target | 8.4 |
| erm sentiment | 4.6 |
- ▸Analyst upside: 28%
Insider
3.4/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 3.0 |
| insider conviction | 2.0 |
| holder change | 5.1 |
- ▸Notable insider selling — $23,214,920 (0.299% of mkt cap)
Peer rank
4.1/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 7.9 |
| quality rank | 3.5 |
| growth rank | 0.0 |
- ▸Attractive P/E vs peers
Technical
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 5.9 |
| support resistance | 7.1 |
| 52w position | 4.8 |
Risk (lower is worse)
3.8/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 3.3 |
| days to cover | 6.4 |
| volatility | 0.0 |
| put call | 6.3 |
| implied vol | 3.7 |
| beta | 3.3 |
| debt equity | 3.9 |
Catalyst
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 5.6 |
| earnings timing | 5.0 |
| surprise avg | 3.4 |
| dividend safety | 5.2 |
- ▸Dividend: 325.0%
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (7)
- ASYMMETRY:1.5>=1.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:81d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- MOMENTUM:4.3<4.5
Warning (0)
none
Reward-to-Risk
1.46
Upside
+15.0%
Downside
10.3%
Sizing output
AVOID
SetupRANGE_BOUND — RSI 53 mid-range, Bollinger mid-band
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 2.01>1.3
Investment implication
The F-path SELL output reflects an overall score of 3.2 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Value at 8.2) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:4.3<4.5) reinforce the read. Current asymmetry R:R is 1.46 — supplementary context, not the trigger for this path.
The strongest dimensions are Value at 8.2, Sentiment at 7.0, and Growth at 6.3; the weakest are Insider at 3.4, Risk (lower is worse) at 3.8, and Peer rank at 4.1. The V9 engine flagged 1 failed gate, producing an asymmetric reward-to-risk of 1.46 and an engine sizing output of AVOID.