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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Children's Place Retail Stores as such a stock due to the following factors:
- PLCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
- PLCE has traded 53,192 shares today.
- PLCE traded in a range 261.3% of the normal price range with a price range of $4.10.
- PLCE traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on PLCE:
The Children's Place Retail Stores, Inc. operates as a children's specialty apparel retailer in North America. The company provides apparel, accessories, and shoes for children from newborn to 10 years of age. PLCE has a PE ratio of 24.4. Currently there are 2 analysts that rate Children's Place Retail Stores a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Children's Place Retail Stores has been 407,000 shares per day over the past 30 days. Children's Place Retail Stores has a market cap of $1.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.20 and a short float of 8.5% with 4.38 days to cover. Shares are up 18.1% year to date as of the close of trading on Monday.
rates Children's Place Retail Stores as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.5%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 456.46% to $26.29 million when compared to the same quarter last year. In addition, CHILDRENS PLACE RETAIL STRS has also vastly surpassed the industry average cash flow growth rate of 7.35%.
- PLCE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.77 is somewhat weak and could be cause for future problems.
- CHILDRENS PLACE RETAIL STRS's earnings per share declined by 41.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CHILDRENS PLACE RETAIL STRS reported lower earnings of $2.60 versus $2.90 in the prior year. This year, the market expects an improvement in earnings ($3.24 versus $2.60).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Children's Place Retail Stores Ratings Report.