The Children's Place, Inc. shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.71 for the 2022 fiscal year.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 43.51 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 83.66.
● Technically, the stock approaches a strong medium-term resistance at USD 83.66.
● The company has insufficient levels of profitability.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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The Children's Place, Inc. is an omni-channel childrenâs specialty portfolio of brands with an industry-leading digital-first model. The Company designs, contracts to manufacture, and sell fashionable apparel, accessories, and footwear primarily under its proprietary brands: The Childrenâs Place, Gymboree, Sugar & Jade, and PJ Place. Its segments include The Childrenâs Place U.S. and The Childrenâs Place International. The Childrenâs Place U.S. segment includes the United States and Puerto Rico-based stores. The Childrenâs Place International segment includes Canadian based wholesale business, as well as international franchisees. Its global retail and wholesale network includes two digital storefronts, more than 500 stores in North America, wholesale marketplaces and distribution in 16 countries through six international franchise partners. Its merchandise is also available online at www.childrensplace.com and www.gymboree.com.