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The Children's Place (PLCE) Gains But Lags Market: What You Should Know

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The Children's Place (PLCE) closed at $70.44 in the latest trading session, marking a +0.41% move from the prior day. The stock lagged the S&P 500's daily gain of 2.44%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 0.28%.

Heading into today, shares of the children's clothing and accessories chain had lost 13.64% over the past month, lagging the Retail-Wholesale sector's loss of 13.11% and the S&P 500's loss of 9.65% in that time.

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 recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.31% higher. The Children's Place currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, The Children's Place is holding a Forward P/E ratio of 5.2. Its industry sports an average Forward P/E of 11.76, so we one might conclude that The Children's Place is trading at a discount comparatively.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The Children's Place, Inc. (PLCE) : Free Stock Analysis Report
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