Shares of children's apparel manufacturer Carter's Inc (CRI, Financial) dropped 15.55%, trading at $35.57. This decline follows President Trump's announcement of "reciprocal tariffs" on all U.S. imports, with a minimum rate of 10%.
Despite the negative market reaction, Carter's Inc (CRI, Financial) presents a compelling investment case due to its valuation metrics. The company exhibits a low price-to-earnings (P/E) ratio of 6.93, which is near its 10-year low, signaling potential undervaluation. Additionally, Carter's price-to-book (P/B) ratio of 1.5 is similarly nearing a decade low, suggesting that the stock might be undervalued based on its assets.
The company's GF Score of 62 indicates it is significantly undervalued compared to its GF Value estimate of $69.39. For more detailed metrics, you can visit the GF Value page for Carter's Inc.
Furthermore, Carter's Inc (CRI, Financial) exhibits a robust dividend yield of 8.98%, which is close to a 10-year high, making it an attractive option for income-focused investors. Its operating margin is expanding, which is generally a positive indication of profitability improvements.
The company does face some warning signs, such as a grey Altman Z-Score indicating potential financial stress, and a slowdown in revenue growth over the past 12 months. However, its Beneish M-Score suggests it is unlikely to be a manipulator, and its operating margins are expanding, adding to its investment appeal.
