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

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In the latest trading session, Citi Trends (CTRN - Free Report) closed at $91.18, marking a -0.56% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.

Prior to today's trading, shares of the clothing and accessories company had gained 18.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.41% and the S&P 500's gain of 3.19% in that time.

Wall Street will be looking for positivity from Citi Trends as it approaches its next earnings report date. This is expected to be November 30, 2021. On that day, Citi Trends is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 52.24%. Meanwhile, our latest consensus estimate is calling for revenue of $216.8 million, up 8.89% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.50 per share and revenue of $1.01 billion. These totals would mark changes of +173.11% and +29.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Citi Trends. These revisions help to show the ever-changing nature of near-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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Citi Trends is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Citi Trends is holding a Forward P/E ratio of 14.11. This valuation marks a discount compared to its industry's average Forward P/E of 14.46.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 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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