The Children's Place May Offer An Opportunity For Bottom Fishing
Davit Kirakosyan | May 25, 2022 23:59
- The Children's Place (NASDAQ:PLCE) is a specialty apparel retailer, with the stock down 42% YTD, trading near its 52-week low.
- InvestingPro+ suggests a strong upside for the stock based on its solid fundamentals, even as the sector faces broader headwinds.
- This article shows how we found The Children’s Place, what its set-up is, and what investors should watch for next.
- If you’re interested in upgrading your search for new investing ideas, check out InvestingPro+
- Market cap: $617.1 million
- Current price/52-week range: $45.65 ($42.70 - $113.50)
- P/E Ratio: 3.8x
- Revenue compound annual growth last 5 years: 1.4%
Looking For Value Opportunities/h2
One of the challenges in the current challenging and volatile macro environment is to find a stock with attractive growth prospects. As the market continues to sell off, it seems like a new sector is hit everyday. Tech sold off long ago, financials have struggled, and most recently retail got hammered, with Target and Walmart plunging 29% and 20% last week following disappointing earnings results.
Bottom picking in this environment can be dangerous. At the same time, these past few years have shown how the market will overreact on both the upside and the downside, and there may be opportunities as a result.
In this article, we will analyze The Children's Place, Inc. (Source: InvestingPro+
From the list of the companies matching the above filters, The Children's Place, Inc. has a very low PE ratio of 3.8x and over 70% upside potential. On the surface, that’s interesting.
Moreover, the company’s stock price is down around 42% since the start of the year, trading near its 52-week low.
The Children’s Place: Value or Value Trap?/h2
Basic stats:
The Children's Place, Inc. is an apparel retailer, operating 672 stores in the United States, Canada, and Puerto Rico, online stores at childrensplace.com, gymboree.com, and sugarandjade.com, as well as seven international franchise partners operated 211 international points of distribution in 16 countries. The company’s primary focus is small children’s apparel (sizes 4 to 14).
Disclaimer: The author has no positions in The Children's Place, Target (NYSE:TGT), Walmart (NYSE:WMT), or any other stock mentioned.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.