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The Children's Place (PLCE) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, The Children's Place (PLCE - Free Report) closed at $72.72, marking a -1.37% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the children's clothing and accessories chain had lost 9.58% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 gained 0.12%.

Wall Street will be looking for positivity from The Children's Place as it approaches its next earnings report date. In that report, analysts expect The Children's Place to post earnings of $3.12 per share. This would mark year-over-year growth of 208.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $538.2 million, up 13.81% from the year-ago period.

PLCE's full-year Zacks Consensus Estimates are calling for earnings of $13.50 per share and revenue of $1.95 billion. These results would represent year-over-year changes of +469.86% and +27.78%, respectively.

Investors might also notice recent changes to analyst estimates for The Children's Place. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. 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).

Digging into valuation, The Children's Place currently has a Forward P/E ratio of 5.46. For comparison, its industry has an average Forward P/E of 12.12, 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 group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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