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The Children's Place (PLCE) Dips More Than Broader Markets: What You Should Know

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The Children's Place (PLCE) closed the most recent trading day at $68.30, moving -1.54% from the previous trading session. This change lagged the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the children's clothing and accessories chain had lost 9.57% in the past month. In that same time, the Retail-Wholesale sector lost 5.18%, while the S&P 500 lost 0.78%.

Investors will be hoping for strength from The Children's Place as it approaches its next earnings release. On that day, The Children's Place is projected to report earnings of $3.12 per share, which would represent year-over-year growth of 208.91%. Our most recent consensus estimate is calling for quarterly revenue of $538.2 million, up 13.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.50 per share and revenue of $1.95 billion, which would represent changes of +469.86% and +27.78%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for The Children's Place. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.31% higher. The Children's Place is currently a Zacks Rank #3 (Hold).

Investors should also note The Children's Place's current valuation metrics, including its Forward P/E ratio of 5.14. For comparison, its industry has an average Forward P/E of 12.23, which means The Children's Place is trading at a discount to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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