Yahoo Finance Strength Seen in The Children's Place (PLCE): Can Its 16.4% Jump Turn into More Strength?
The Children's Place (PLCE) shares ended the last trading session 16.4% higher at $7.96. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 41.5% loss over the past four weeks.
The Company recently received $78.6 million in interest-free, unsecured, and subordinated loans from its new majority shareholder, Mithaq, as new capital. On April 17, 2024, it secured an additional $90 million unsecured and subordinated term loan from Mithaq, repaying a $50 million term loan with Wells Fargo and providing extra working capital. Subsequently, on May 2, 2024, the Company entered into a $40 million senior unsecured credit facility commitment with Mithaq. These financings enhance the Company's liquidity for operations.
This children's clothing and accessories chain is expected to post quarterly loss of $1.32 per share in its upcoming report, which represents a year-over-year change of +37.7%. Revenues are expected to be $334.19 million, down 3.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For The Children's Place, the consensus EPS estimate for the quarter has been revised 4.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PLCE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
The Children's Place is part of the Zacks Retail - Apparel and Shoes industry. Allbirds, Inc. (BIRD), another stock in the same industry, closed the last trading session 0.5% lower at $0.56. BIRD has returned -9.9% in the past month.
Allbirds, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. Compared to the company's year-ago EPS, this represents no change. Allbirds, Inc. currently boasts a Zacks Rank of #2 (Buy).
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