The company met Wall Street's profit expectations of 56 cents per share, but its $3.66 billion in sales fell slightly short of forecasts. Even after the stock has dropped more than 8 percent this year, it could climb, said trader Karen Finerman.
"The stock's not expensive here. I don't think you're paying a lot for the turnaround," she said.
Markets showed little reaction to Gap's results, as shares fell about 0.2 percent in extended trading Thursday. At $38 per share, "a lot of bad news" is priced in, said trader Tim Seymour.
Investors should use caution on Gap, but it may hold some upside moving forward, said trader Guy Adami.
"You're not going to get crushed here, being long in Gap at $38," he said.
Gap's discount brand, Old Navy, had 3 percent comparable-store-sales growth in the quarter—a bright spot the retailer outlined on Thursday. But in the discount space, trader Brian Kelly looked to TJX Companies.
Shares of the retailer—which owns TJ Maxx and Ross brands—have climbed 19 percent in the last year.
CVS shares rose more than 2 percent Thursday.
"I think they can do a great job with this acquisition," said Finerman, whose firm Metropolitan Capital Advisors owns CVS stock.
— Reuters contributed to this report.
Tim Seymour is long AAPL, T, BAC, C, DIS, F, GE, GM, GOOGL, INTC, JCP and SUNE. Tim's firm is long BABA, BIDU, CHL, MCD, NKE, NOK, SBUX, SINA and YHOO.
Brian Kelly is long DXGE, BTC=, BBRY and U.S. dollar. He is short Australian dollar, Canadian dollar, euro, yen, yuan, and WTI crude oil.
Karen is long BABA, BAC, C, FINL, FL, GILD, GOOG, GOOGL, JPM, M, KORS and SEDG. She is short SPY. Her firm is long ANTM, AAPL, BAC, C, CVS, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, M, MU, PLCE, KORS, SEDG, SUNE, URI, XBI, GPS puts and S&P puts. Her firm is short IWM, SPY and MDY. Karen Finerman is on the board of GrafTech International.
Guy Adami is long CELG, EXAS and INTC. Guy Adami's wife, Linda Snow, works at Merck.