CRI Should I Buy
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Carter's Inc (CRI) is not a strong buy at this time for a beginner investor with a long-term strategy. While there are signs of a potential turnaround, the technical indicators are weak, and the stock lacks strong momentum or significant positive catalysts to justify immediate investment. A hold position is recommended until clearer signs of growth or stability emerge.
The MACD is negatively expanding (-0.912), indicating bearish momentum. RSI is at 33.088, which is neutral but leaning towards oversold territory. The stock is trading near its support level (S1: 34.055), with converging moving averages suggesting indecision in the market. Overall, the technical indicators do not signal a strong buying opportunity.
Analysts have upgraded the stock recently, with price targets ranging from $40 to $50, citing a turnaround story and favorable risk/reward.
Q4 2025 revenue and earnings showed year-over-year growth, reflecting resilience in market demand.
Gross margin dropped by 9.56% YoY in Q4 2025, raising concerns about profitability.
Disappointing fiscal 2026 guidance led to a 5.3% drop in share price post-earnings.
Weak technical indicators and lack of momentum.
In Q4 2025, revenue increased by 7.65% YoY to $925.5 million, and net income grew by 4.63% YoY to $63.03 million. EPS rose by 4.09% YoY to $1.78. However, gross margin dropped by 9.56% YoY to 43.24%, indicating margin pressures.
Recent upgrades from Monness Crespi, UBS, and Citi highlight a positive turnaround story for Carter's, with price targets ranging from $40 to $50. However, Goldman Sachs maintains a Sell rating with a $26 price target, citing concerns about tariffs and limited growth opportunities.
