Gap Inc vs CarMax, Inc — how do they compare? Gap Inc trades at $23.33 (market cap $8.29B), while CarMax, Inc trades at $53.88 (market cap $7.56B). The key difference: Gap Inc and CarMax, Inc are close in size by market cap, and Gap Inc pays a 2.96% dividend while CarMax, Inc pays none. Which is the better fit depends on your goals — on Pluang, investors hold Gap Inc for 37 Days and CarMax, Inc for 49 Days on average.
| GAP | KMX | |
|---|---|---|
Market Cap | $8.29B | $7.56B |
Volume | 5,470,564 | 3,338,522 |
Sector | Consumer Cyclical | Consumer Cyclical |
52-Week High | $29.13 | $64.22 |
52-Week Low | $18.35 | $30.88 |
Typical Hold Time | 37 Days | 49 Days |
Enterprise Value | $11.53B | $25.26B |
Dividend Yield | 2.96% | — |
Signals from Pluang's Aura AI — not financial advice
Gap (GAP) trades at $23.61, down 0.76% on the day, with a bullish technical signal from moving averages. The stock shows strong fundamentals with a low P/E of 7.11 and robust profitability, including a 33.78% ROE. Recent earnings beat estimates in Q1 and Q2 2026, and the company is expanding into music partnerships to engage customers. Cash flow from operations remains healthy at $1.49 billion for 2025.
The outlook is positive given Gap's attractive valuation, earnings momentum, and strategic initiatives. Key risks include competitive pressures in retail and reliance on brand revitalization. Analyst consensus is a $25.67 price target, suggesting upside potential, but investors should monitor execution of growth strategies amid economic uncertainties.
CarMax (KMX) trades at $53.79, down 2.71% with bearish technical signals despite recent earnings beats. The company reported strong Q2 2026 results with EPS of $1.16 beating estimates by 58%, driven by 19.5% revenue growth to $7.9 billion. However, net income margin remains thin at 1.06% and the stock faces resistance near $54 with negative cash flow trends. Management's 'Shift into GEAR' strategy shows early traction with improved unit sales and pricing power.
KMX presents a mixed outlook with valuation support (P/S 0.28) offset by margin pressure and high debt load. Analyst consensus targets $58.89 (9.5% upside) but technical weakness suggests near-term consolidation. Key risks include used car market volatility and interest rate sensitivity given $18.1B long-term debt. The turnaround story requires sustained execution to justify current multiples.
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Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates nearly 3,000 stores in North America, Europe, and Asia and franchises about 600 stores in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
Read more on GAP →CarMax sells, finances, and services used and new cars through a chain of over 230 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue and wholesale about 13%, with the remaining portion composed of extended service plans and repair. In fiscal 2022, the company retailed and wholesaled 924,338 and 706,212 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 4% U.S. market share of vehicles 0-10 years old in 2021. It seeks over 5% share by the end of calendar 2025 and revenue between $33 billion to $45 billion by fiscal 2026. CarMax is based in Richmond, Virginia.
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