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The Children's Place (PLCE) Dips More Than Broader Markets: What You Should Know

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The Children's Place (PLCE - Free Report) closed the most recent trading day at $62.96, moving -1.15% from the previous trading session. This move lagged the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Prior to today's trading, shares of the children's clothing and accessories chain had lost 9.58% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.26% and the S&P 500's gain of 0.73% in that time.

The Children's Place will be looking to display strength as it nears its next earnings release. 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, our latest consensus estimate is calling for revenue of $538.2 million, up 13.81% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for The Children's Place. Recent revisions tend to reflect the latest 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.

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. The Zacks Consensus EPS estimate has moved 1.56% lower within the past month. The Children's Place currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, The Children's Place is holding a Forward P/E ratio of 5.04. This represents a discount compared to its industry's average Forward P/E of 10.66.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.

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


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