12 Best Cheap Stocks to Buy Right Now

8. The Gap, Inc. (NYSE:GAP)

Upside: 12.58%

Forward P/E: 12.45x

Number of Hedge Fund Holders: 49

The Gap, Inc. (NYSE:GAP) is one of the Best Cheap Stocks to Buy Right Now.

On January 30, Goldman Sachs raised its target price on GAP by 10.3% (from $29 to $32). At the same time, they also reiterated their “Buy” rating on the company. In their report, they mentioned that Gap’s brand momentum will play a key role in allowing the company to overcome weak early Q1-2026 trends (due to weather, soft labor market, and weakening consumer confidence), which could lead to volatility in the near term, and ultimately outperform the industry.

This latest target revision from Goldman Sachs follows a series of target price and rating upgrades from other firms in early January. UBS raised their target price to $41 (up from $26) and upgraded to a “Buy” rating (from “Neutral”), as Gap’s beauty and handbag businesses start to payoff. Barclays also raised their target price to $33 (up from $30), citing lower interest rates and gas prices as catalysts for consumer demand.

On target prices, CNN’s data show that 13 of 20 analysts (~65%) covering Gap have a “Buy” rating, with the remaining seven (~35%) having a “Hold” recommendation.  The median target price is $31.50 (with a high of $41.00), implying an upside of 12.58% (46.53% if using the highest estimate).

The Gap, Inc. (NYSE:GAP) is a global apparel retailer, operating a portfolio of global brands, such as Gap, Old Navy, Banana Republic, and Athleta. The company was founded in July 1969 by Donald G. Fisher and Doris F. Fisher and is headquartered in San Francisco.