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Citi Trends (CTRN) Stock Sinks As Market Gains: What You Should Know

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Citi Trends (CTRN) closed at $46.03 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.01%.

Coming into today, shares of the clothing and accessories company had lost 20.46% in the past month. In that same time, the Retail-Wholesale sector lost 2.81%, while the S&P 500 lost 4.02%.

Wall Street will be looking for positivity from Citi Trends as it approaches its next earnings report date. In that report, analysts expect Citi Trends to post earnings of $1.09 per share. This would mark a year-over-year decline of 39.78%. Our most recent consensus estimate is calling for quarterly revenue of $241.8 million, down 4.02% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Citi Trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Citi Trends is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Citi Trends currently has a Forward P/E ratio of 6.13. Its industry sports an average Forward P/E of 11.17, so we one might conclude that Citi Trends is trading at a discount comparatively.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.

To follow CTRN in the coming trading sessions, be sure to utilize Zacks.com.


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