Carter's (CRI) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Carter's ( CRI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Carter's as such a stock due to the following factors:

  • CRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.7 million.
  • CRI has traded 4,729 shares today.
  • CRI is trading at a new lifetime high.

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More details on CRI:

Carter's, Inc. and its subsidiaries design, source, and market branded children's wear under the Carter's, Child of Mine, Just One You, Precious Firsts, OshKosh, and other brands. The stock currently has a dividend yield of 1%. CRI has a PE ratio of 28.0. Currently there are 3 analysts that rate Carter's a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Carter's has been 691,600 shares per day over the past 30 days. Carter's has a market cap of $4.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.86 and a short float of 5.5% with 4.13 days to cover. Shares are up 10.8% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Carter's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • CRI's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CARTER'S INC has improved earnings per share by 45.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CARTER'S INC increased its bottom line by earning $2.77 versus $2.69 in the prior year. This year, the market expects an improvement in earnings ($3.89 versus $2.77).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 31.6% when compared to the same quarter one year prior, rising from $19.67 million to $25.90 million.
  • 46.99% is the gross profit margin for CARTER'S INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.44% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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