Returns Breakdown
0.0276
Return On Tangible Assets
0.0282
Return On Assets
0.0426
Return On Equity
| Return On Tangible Assets | 0.0276 | |
| Return On Capital Employed | 0.0514 | |
| Return On Assets | 0.0282 | |
| Return On Equity | 0.0426 |
Is Citi Trends (USA Stocks:CTRN) outlook positive for September 2024?
 | By Raphi Shpitalnik | Macroaxis Story |
Citi Trends is currently facing some headwinds, with an EPS estimate of -0.31 for next year, but the stock's recent price movement suggests potential for recovery, especially with a Wall Street target price of 31. As the company navigates these challenges, investors might find an attractive entry point given its current trading around 16.29, which is significantly below its 52-week high of 32.9.
Important Points
Citi Trends has a Beta of 1.76, indicating it carries a higher risk compared to the overall market. This means that when the market rises, Citi Trends is likely to perform better, but in a downturn, it may lag behind. Currently, the stock has a negative expected return of -0.58%. To make an informed decision about investing in Citi Trends, it's essential to check its total risk alpha and kurtosis. Additionally, understanding the relationship between kurtosis and the day typical price can provide insights into whether the company's past performance might repeat itself soon.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
In the world of investing, every cloud has a silver lining. Citi Trends has faced some recent hurdles, with an EPS estimate for the current year showing a loss of 0.84 and a projected loss of 0.31 for the next year. However, the stock is currently trading around 16.29, significantly below its 52-week high of 32.9, suggesting potential for recovery. Analysts are optimistic, with a strong buy consensus and a target price averaging 29.25, indicating that there could be substantial upside as the company navigates its challenges. With a PEG ratio of 1.08 and a beta of 2.389, the stock may appeal to those willing to take on some risk for the chance of a rebound in the specialty retail sector. Despite the current struggles, the accumulation distribution shows some buying interest, hinting that savvy investors might find value at these levels. Citi Trends is showing stable cash and cash equivalents compared to last year. As of August 26, 2024, its cash flows from operations are expected to rise to around $52.3 million, while the payout ratio is projected to decrease to 0.21. This brief overview highlights Citi Trends as a potential investment option for your portfolio. We’ll also share insights on the company’s future direction.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Citi Trends. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Citi Trends
How important is Citi Trends's Liquidity
Citi Trends financial leverage refers to using borrowed capital as a funding source to finance Citi Trends ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Citi Trends financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Citi Trends' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Citi Trends' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Citi Trends's total debt and its cash.
Citi Trends Gross Profit
Citi Trends Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Citi Trends previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Citi Trends Gross Profit growth over the last 10 years. Please check Citi Trends' gross profit and other fundamental indicators for more details.
A Deeper Perspective
Citi Trends exhibits very low volatility with skewness of -0.06 and kurtosis of 0.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Citi Trends' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Citi Trends' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
In the world of investing, every challenge can also present an opportunity. Citi Trends has faced some hurdles recently, including an EPS estimate of losses at 0.84 for the current year, but the company shows potential for recovery. With a current ratio of 1.13X and a market capitalization of 137.1 million, it maintains a solid financial footing. The stock is currently trading around 16.29, significantly below its 52-week high of 32.9, suggesting a potential upside of 5.28 if it can navigate its challenges effectively. Investors should keep an eye on the Wall Street target price of 31, which indicates optimism for a rebound in the coming months..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Citi Trends. Please refer to our Terms of Use for any information regarding our disclosure principles.