CRI - Why Carter's Is Still a Buy After Surpassing Analysts' Price Targets
Carter's (NYSE: CRI) topped analysts' average price target of $109 a share in December, and the stock appears headed for a 33% gain on the year, outperforming the S&P 500 Index's 27% increase. Though some might be concerned that the stock doesn't have much more room to climb from here, the company's position in the market, earnings growth, and e-commerce strategy could all drive further gains in 2020.
Most Americans have either worn a Carter's garment or have purchased one -- and more likely, both. The maker of clothing for babies and children has been around since 1865, so we can truly call the brand an American classic.
These days, Carter's is the best-selling baby clothing brand in the U.S., with almost five times the market share of its nearest competitor. Companies in the same space include The Gap, Old Navy, and Disney, but The Washington Post has cited The Children's Place (NASDAQ: PLCE) as Carter's closest rival, with sales of $1.9 billion last year. Carter's reported $3.5 billion in sales for the same period. According to Statista, the U.S. market for baby and young children's apparel was worth $21 billion in 2018.