Citi Trends Inc. (CTRN) Stock Price Soars by 28% Over the Past Three Months
Citi Trends Inc. (NASDAQ:CTRN), a leading retailer of urban fashion apparel and accessories in the United States, has seen a significant increase in its stock price over the past three months. As of August 23, 2023, the company's stock price stands at $25.39, up by 28.45% from $16.97 three months ago. The company's market cap is currently $211.065 million. Over the past week, the stock price has seen a gain of 12.15%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of Citi Trends Inc. is $34.88, slightly lower than the past GF Value of $35.29. According to the GF Valuation, the stock is modestly undervalued, an improvement from being significantly undervalued three months ago.
About Citi Trends Inc.
Citi Trends Inc. operates in the cyclical retail industry. The company offers a wide range of products, including fashion sportswear for men, women, and children, accessories like handbags, jewelry, footwear, belts, intimate apparel, scrubs, and sleepwear, as well as functional and decorative home products, beauty products, books, and toys.
Profitability Analysis
As of April 30, 2023, Citi Trends Inc. has a Profitability Rank of 8/10, indicating a high level of profitability. The company's operating margin is -0.39%, which is better than 26.9% of the 1093 companies in the same industry. The ROE, ROA, and ROIC, which are 14.52%, 4.16%, and -0.62% respectively, are better than the majority of the companies in the industry. The company has maintained profitability for the past 10 years, which is better than 99.9% of the 1046 companies.
Growth Prospects
Citi Trends Inc. has a Growth Rank of 10/10, indicating strong growth prospects. The company's 3-year and 5-year revenue growth rate per share are 13.10% and 15.20% respectively, which are better than the majority of the companies in the industry. The 3-year and 5-year EPS without NRI growth rate are 72.00% and 51.40% respectively, which are also better than most of the companies in the industry.
Major Stock Holders
Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) are the top two holders of Citi Trends Inc.'s stock. Chuck Royce (Trades, Portfolio) holds 196,110 shares, which is 2.36% of the total shares, while Jim Simons (Trades, Portfolio) holds 32,657 shares, which is 0.39% of the total shares.
Competitive Landscape
The top three competitors of Citi Trends Inc. are The Cato Corp (NYSE:CATO) with a market cap of $154.861 million, Rent the Runway Inc (NASDAQ:RENT) with a market cap of $88.191 million, and Lulus Fashion Lounge Holdings Inc (NASDAQ:LVLU) with a market cap of $83.531 million.
Conclusion
In conclusion, Citi Trends Inc. has shown strong performance in the stock market over the past three months with a significant increase in its stock price. The company's high profitability rank and strong growth prospects indicate a promising future. However, the company faces stiff competition from other companies in the industry. Therefore, investors should carefully consider these factors before making investment decisions.
This article first appeared on GuruFocus.
