Carter’s, Inc. (NYSE: CRI), may not be a large-cap stock, but it has received a lot of attention due to substantial price movement on the NYSE in recent months, passing at US $ 108 at one point, and falling to the lows of US $ 94.41. Certain movements in stock prices can give investors a better opportunity to get into the stock, and potentially buy at a lower price. One question to be answered is whether Carter’s current price of US $ 96.22 reflects the true value of the mid-cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at Carter’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Carter’s

What is the opportunity in Carter’s?

Good news for investors – Carter’s is still trading fairly low. According to my assessment, the intrinsic value of the stock is $ 148.90, but it is currently trading at US $ 96.22 in the stock market, which means there is still an opportunity to buy now. . What’s more interesting is that Carter’s stock price is quite volatile, which gives us more chances to buy as the stock price could go down (or up) in the future. This is based on its high beta, which is a good indicator of how the stock is moving relative to the rest of the market.

What does Carter’s future look like?

Investors looking to grow their portfolio may want to consider the prospects of a company before buying its shares. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. Although in Carter’s case, it is expected to generate relatively unexciting 9.3% earnings growth, which does not help bolster its investment thesis. Growth does not appear to be the primary reason for a buying decision for the company, at least in the short term.

What this means for you:

Are you a shareholder? Even though the growth is relatively moderate, given that CRI is currently undervalued, perhaps now is a great time to build up more of your equity holdings. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping your eye on IRC for a while, now might be the time to take a leap. Its future prospects are not yet fully reflected in the current share price, which means it is not too late to buy CRI. But before making any investment decisions, consider other factors such as the track record of its management team, in order to make an informed purchase.

If you’re interested in learning more about Carter’s as a business, it’s important to be aware of the risks it faces. For example, we discovered 2 warning signs that you should run your eye to get a better picture of Carter.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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