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

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In the latest trading session, The Children's Place (PLCE - Free Report) closed at $46.40, marking a +1.8% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.

Prior to today's trading, shares of the children's clothing and accessories chain had lost 15.81% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.

Wall Street will be looking for positivity from The Children's Place as it approaches its next earnings report date. The company is expected to report EPS of $1.66, down 48.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $406 million, down 6.77% from the year-ago period.

PLCE's full-year Zacks Consensus Estimates are calling for earnings of $11.39 per share and revenue of $1.93 billion. These results would represent year-over-year changes of -15% and +0.73%, respectively.

It is also important to note the recent changes to analyst estimates for The Children's Place. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 6.1% higher. The Children's Place is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note The Children's Place's current valuation metrics, including its Forward P/E ratio of 4. For comparison, its industry has an average Forward P/E of 9.88, 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 industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.

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


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