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

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Citi Trends (CTRN - Free Report) closed the most recent trading day at $28.52, moving +1.75% from the previous trading session. This change outpaced the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.

Coming into today, shares of the clothing and accessories company had lost 12.46% in the past month. In that same time, the Retail-Wholesale sector lost 7.64%, while the S&P 500 lost 5.26%.

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 $0.34 per share. This would mark a year-over-year decline of 89.47%. Meanwhile, our latest consensus estimate is calling for revenue of $207.1 million, down 27.43% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.45 per share and revenue of $940.2 million. These totals would mark changes of -35.6% and -5.18%, respectively, from last year.

Any recent changes to analyst estimates for Citi Trends should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Citi Trends is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Citi Trends is currently trading at a Forward P/E ratio of 6.3. This valuation marks a discount compared to its industry's average Forward P/E of 9.03.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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