Carter’s, Inc. ($CRI) Cautious Buy or Hold to $112 Confident Investor Rating: Fair

Company name Carter’s, Inc.
Stock ticker CRI
Live stock price [stckqut]CRI[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $142.68
Target stock price (averages with growth) $134.73
Target stock price (averages with no growth) $61.05
Target stock price (manual assumptions) $123.88

The following company description is from Google Finance: http://www.google.com/finance?q=cri

Carter’s, Inc. (Carter’s) is a marketer of apparel for babies and young children in the United States. The Company owns two brand names in the children’s apparel industry, Carter’s and OshKosh. The Company operates through five business segments: Carter’s wholesale, Carter’s retail, OshKosh retail, OshKosh wholesale and international. Under its Carter’s brand, Carter’s designs, sources and markets an array of products, primarily for sizes newborn to seven. Carter’s brand is sold in department stores, national chains, specialty stores, off-price sales channels, through its Carter’s retail stores, and online atwww.carters.com. Under its OshKosh brand, the Company designs, sources, and markets an array of young children’s apparel, primarily for children in sizes newborn to 12. Its OshKosh brand is sold in its OshKosh retail stores, department stores, national chains, specialty stores, through off-price sales channels, and online at www.oshkoshbgosh.com andwww.oshkosh.com.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Carter’s, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am removing Carter’s from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Carter’s, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $92.3
  • Growth: 0.17
  • Current EPS (TTM): $3.64
  • P/E: 25
  • Future EPS Calc: $7.98
  • Future Stock Price Calc: $199.51
  • Target stock price: $123.88

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I hope that this makes you a Confident Investor.

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