An interesting stock that came up in some of our conversations today is The Children’s Place, Inc. (NASDAQ:PLCE). At current price of $69.87, the shares have already added 1.89 points (2.78% higher) from its previous close of $67.98. Should you buy or avoid them? The stock sets an active trading volume day with a reported 275624 contracts so far this session. PLCE shares had a relatively better volume day versus average trading capacity of 555.46 thousand shares, but with a 15.13 million float and a -4.17% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PLCE stock indicates that the average analyst price target is $104.33 per share. This means the stock has a potential increase of 49.32% from where the PLCE share price has been trading recently which is between $67.33 and $69.28. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $80. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $135.
During the recent trading session for The Children’s Place, Inc. (NASDAQ:PLCE), the company witnessed their stock drop by $-1.54 over a week and tumble down $-16.39 from the price 20 days ago. When compared to their established 52-week high of $116.84, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 03/05/19. The recent low of $67.33 stood for a -46.52% since 03/12/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.72 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for PLCE is set at $105, a figure which is below the recent 1-year high the stock witnessed.
Looking at the current readings for The Children’s Place, Inc., the two-week RSI stands at 39.05. This figure suggests that PLCE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current PLCE readings is similarly very revealing as it has a stochastic reading of 8.98% at this stage. This figure means that PLCE share price today is being overbought.
Technical chart claims that The Children’s Place, Inc. (PLCE) would settle between $69.06/share to $70.15/share level. However, if the stock price goes below the $67.11 mark, then the market for The Children’s Place, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $66.25 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.29. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Barclays, assumed coverage of PLCE assigning Equal Weight rating, according to their opinion released on November 13. Wolfe Research analysts again handed out a Outperform recommendation to The Children’s Place, Inc. (NASDAQ:PLCE) stock but they lifted target price for the shares in a flash note issued to investors on August 22. The target price has been raised from $137 to $102. Analysts at Monness Crespi & Hardt are sticking to their Buy stance. However, on August 22, they lifted price target for these shares to $105 from $128.
PLCE equity has an average rating of 2.23, with the figure leaning towards a bullish end. 8 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 6 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 6 analysts rated The Children’s Place, Inc. (NASDAQ:PLCE) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, PLCE stock price is currently trading at 9.16X forward 12-month Consensus EPS estimates, and its P/E ratio is 16.5 while for the average stock in the same group, the multiple is 25.2. The Children’s Place, Inc. current P/B ratio of 4.2 means it is trading at a discount against its industry’s 7.5.