12 Best Very Cheap Stocks to Buy in 2026

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

Forward P/E: 8.94

On March 6, Bank of America raised the firm’s price target on The Gap, Inc. (NYSE:GAP) to $29 from $27 while maintaining a Neutral rating. The firm said there were “no surprises” in the company’s fourth-quarter results. Although analysts were encouraged by positive comparable sales growth, they remain cautious about the outlook for lower-income consumers, who could face pressure from tariffs and broader economic factors. Bank of America increased its fiscal 2026 earnings per share estimate by 3% to $2.25, reflecting a slightly improved outlook for gross margins. On the same day, Citigroup also raised its price target on GAP to $27 from $25 while keeping a Neutral rating.

The Gap, Inc. (NYSE:GAP) reported that for the fourth quarter and fiscal year ended January 31, 2026, net sales increased 2% to $15.4 billion. The company recorded its second consecutive year of revenue growth and its eighth straight quarter of positive comparable sales. Operating income reached $1.1 billion with a margin of 7.3%. Performance was supported by strong online sales growth and improving brand momentum at divisions such as Old Navy, Gap, and Banana Republic, although tariffs pressured overall gross margins, and Athleta continued to face declining performance.

The Gap, Inc. (NYSE:GAP) ended fiscal 2025 with $3.0 billion in cash and generated $1.3 billion in operating cash flow along with $823 million in free cash flow. Gap returned approximately $402 million to shareholders through dividends and share repurchases during the year. Its board of directors approved a new $1 billion share repurchase authorization and increased the quarterly dividend. Management also guided for modest net sales growth and further operating margin expansion in fiscal 2026, reflecting confidence in the company’s transformation strategy and financial position.

The Gap, Inc. (NYSE:GAP) is an American multinational apparel and accessories retailer founded in 1969 and headquartered in San Francisco, California. The company operates a portfolio of globally recognized clothing brands and retail platforms serving customers through both physical stores and digital channels. Out of the 12 best very cheap stocks to buy in 2026, Gap falls in ninth place.