GPS - Carter's: An Investment That Is Appealing To More Than Just Parents

2024-06-17 12:58:22 ET

Summary

• Carter's is a household name for anyone with a child ranging from infant to pre-teen.
• The Children's Place is going through some rough times and CRI is bound to benefit from PLCE's store closures and potential exit from the Canadian market.
• Carter's main risk is a declining birth rate, but this may be exacerbated by other factors including the median age of marriage.
• There is strong potential for upside, weakening competition, and the potential for 33% annualized gains over the next 2.5 years.
• CRI is currently trading at a PE Ratio of 10.35X and should conservatively be trading at 13.7X and should realistically reach 17.2X.

Becoming a father truly does change your perspective on things and I can definitely say that I have become more cognizant of the things that I do around my son (especially when it comes to cell phone usage) because I know that everything I do will ultimately have a positive or negative implication on him. I expected that quite a bit would change in my life, but I never expected that this new journey would have an impact on how I look at investing, specifically an investment like Carter's ( CRI )....

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