The Children's Place: Business Performance Will Likely Revert To The Mean

LM Investments
123 Followers

Summary

  • The Children's Place stock is currently undervalued due to recent challenges with high-cost input inventory and weaker-than-expected earnings.
  • The company is expected to return to profitability in the second half of 2023, which could lead to a significant increase in its stock price.
  • PLCE's management has provided guidance for adjusted net earnings of at least $5 per share for the second half of the year.

Happy elementary students raising their hands on a class at school.

skynesher

Investment Thesis

The Children's Place (PLCE) is currently being heavily discounted by the market due to a string of unfortunate events in 2022. However, we believe that the inflated inventory costs stemming from cotton and freight have subsided, and the

This article was written by

123 Followers
I have 10 years of experiences in investing in value and growth stocks.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PLCE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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